Some markets have many buyers and sellers but fall into the category of monopolistic competition rather than perfect competition.The most common reason for this is
A)there are high barriers to entering these markets.
B)firms in these markets sell identical products.
C)firms in these markets make high profits.
D)firms in these markets do not sell identical products.

Question

Quizplus · Accepted Answer

Monopolistic competition occurs when there are many buyers and sellers in a market, but the products sold by each seller are differentiated in some way. This differentiation can come from variations in product quality, design, packaging, or branding. As a result, each seller has some degree of market power and can charge a slightly different price for their product. This leads to less perfect competition than in a market with identical products, like perfect competition.

Some Markets Have Many Buyers and Sellers but Fall into the Category