[amp_mcq option1=”large number of producers and products are homogeneous” option2=”small number of producers and products are homogeneous” option3=”large number of producers with product differentiation” option4=”small number of producers with product differentiation” correct=”option3″]<\/p>\n
The correct answer is: C. large number of producers with product differentiation.<\/p>\n
Monopolistic competition is a market structure in which there are a large number of firms selling products that are similar but not identical. This means that each firm has some degree of market power, but not as much as a monopolist. Firms in monopolistic competition compete on price, product quality, and marketing.<\/p>\n
Option A is incorrect because it describes a perfectly competitive market. In a perfectly competitive market, there are a large number of firms selling identical products. This means that firms have no market power and must compete on price alone.<\/p>\n
Option B is incorrect because it describes a monopoly. In a monopoly, there is only one firm selling a good or service. This means that the firm has a great deal of market power and can charge a high price.<\/p>\n
Option D is incorrect because it describes an oligopoly. In an oligopoly, there are a small number of firms selling a good or service. This means that firms have some market power, but not as much as a monopolist. Firms in an oligopoly often compete on price, product quality, and marketing.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”large number of producers and products are homogeneous” option2=”small number of producers and products are homogeneous” option3=”large number of producers with product differentiation” option4=”small number of producers with product differentiation” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-58174","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n