Which set best describes the basic features of monopolistic competition?
A) Easy entry,few firms,and standardized products
B) Barriers to entry,few firms,and differentiated products
C) Easy entry,many firms,and differentiated products
D) Barriers to entry,many firms,and standardized products

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by easy entry, meaning that new firms can enter the industry easily; many firms, which means that there are a large number of firms in the industry; and differentiated products, meaning that each firm's product is unique in some aspect, giving it a degree of market power but also facing competition from other differentiated products.

Which Set Best Describes the Basic Features of Monopolistic Competition