Monopolistic competition is an industry characterized by a: small number of firm
ID: 1165548 • Letter: M
Question
Monopolistic competition is an industry characterized by a:
small number of firms producing similar products, with relatively easy entry for firms.
large number of firms producing identical products, with relatively easy entry for firms.
large number of firms producing similar products, with relatively easy entry for firms.
small number of firms producing identical products, with barriers to entry for firms.
A.small number of firms producing similar products, with relatively easy entry for firms.
B.large number of firms producing identical products, with relatively easy entry for firms.
C.large number of firms producing similar products, with relatively easy entry for firms.
D.small number of firms producing identical products, with barriers to entry for firms.
Explanation / Answer
c. In monopolistic competition there are large number of firms producing similar products. Product differentiation is one of the features which separates monopolistic competition from perfect competition.