{"id":84891,"date":"2025-06-01T02:54:47","date_gmt":"2025-06-01T02:54:47","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=84891"},"modified":"2025-06-01T02:54:47","modified_gmt":"2025-06-01T02:54:47","slug":"a-market-situation-when-many-firms-sell-similar-but-not-identical-prod","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-market-situation-when-many-firms-sell-similar-but-not-identical-prod\/","title":{"rendered":"A market situation when many firms sell similar but not identical prod"},"content":{"rendered":"

A market situation when many firms sell similar but not identical products is termed as<\/p>\n

[amp_mcq option1=”perfect competition” option2=”imperfect competition” option3=”monopolistic competition” option4=”oligopoly” correct=”option3″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CDS-1 – 2019<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nMonopolistic competition is a market structure characterized by a large number of firms selling products that are similar but differentiated. Product differentiation allows firms some degree of market power, but the large number of competitors limits this power. This description directly matches the definition provided in the question.
\n<\/section>\n
\n– Many firms.
\n– Products are similar but not identical (differentiated).
\n– Characterizes monopolistic competition.
\n<\/section>\n
\n– Perfect competition: Many firms, identical products.
\n– Oligopoly: Few firms, products can be identical or differentiated.
\n– Imperfect competition: A general term encompassing market structures where perfect competition does not hold, including monopolistic competition, oligopoly, and monopoly.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

A market situation when many firms sell similar but not identical products is termed as [amp_mcq option1=”perfect competition” option2=”imperfect competition” option3=”monopolistic competition” option4=”oligopoly” correct=”option3″] This question was previously asked in UPSC CDS-1 – 2019 Download PDFAttempt Online Monopolistic competition is a market structure characterized by a large number of firms selling products that are similar … <\/p>\n

Detailed SolutionA market situation when many firms sell similar but not identical prod<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1087],"tags":[1119,1120,1261],"class_list":["post-84891","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-1","tag-1119","tag-economic-development","tag-nature-of-indian-economy","no-featured-image-padding"],"yoast_head":"\nA market situation when many firms sell similar but not identical prod<\/title>\n<meta name=\"description\" content=\"Monopolistic competition is a market structure characterized by a large number of firms selling products that are similar but differentiated. Product differentiation allows firms some degree of market power, but the large number of competitors limits this power. This description directly matches the definition provided in the question. - Many firms. - Products are similar but not identical (differentiated). - Characterizes monopolistic competition.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/a-market-situation-when-many-firms-sell-similar-but-not-identical-prod\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A market situation when many firms sell similar but not identical prod\" \/>\n<meta property=\"og:description\" content=\"Monopolistic competition is a market structure characterized by a large number of firms selling products that are similar but differentiated. Product differentiation allows firms some degree of market power, but the large number of competitors limits this power. This description directly matches the definition provided in the question. - Many firms. - Products are similar but not identical (differentiated). - Characterizes monopolistic competition.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/a-market-situation-when-many-firms-sell-similar-but-not-identical-prod\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T02:54:47+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"A market situation when many firms sell similar but not identical prod","description":"Monopolistic competition is a market structure characterized by a large number of firms selling products that are similar but differentiated. Product differentiation allows firms some degree of market power, but the large number of competitors limits this power. This description directly matches the definition provided in the question. - Many firms. - Products are similar but not identical (differentiated). - Characterizes monopolistic competition.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/a-market-situation-when-many-firms-sell-similar-but-not-identical-prod\/","og_locale":"en_US","og_type":"article","og_title":"A market situation when many firms sell similar but not identical prod","og_description":"Monopolistic competition is a market structure characterized by a large number of firms selling products that are similar but differentiated. Product differentiation allows firms some degree of market power, but the large number of competitors limits this power. This description directly matches the definition provided in the question. - Many firms. - Products are similar but not identical (differentiated). - Characterizes monopolistic competition.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/a-market-situation-when-many-firms-sell-similar-but-not-identical-prod\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T02:54:47+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/a-market-situation-when-many-firms-sell-similar-but-not-identical-prod\/","url":"https:\/\/exam.pscnotes.com\/mcq\/a-market-situation-when-many-firms-sell-similar-but-not-identical-prod\/","name":"A market situation when many firms sell similar but not identical prod","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T02:54:47+00:00","dateModified":"2025-06-01T02:54:47+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Monopolistic competition is a market structure characterized by a large number of firms selling products that are similar but differentiated. Product differentiation allows firms some degree of market power, but the large number of competitors limits this power. This description directly matches the definition provided in the question. - Many firms. - Products are similar but not identical (differentiated). - Characterizes monopolistic competition.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/a-market-situation-when-many-firms-sell-similar-but-not-identical-prod\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/a-market-situation-when-many-firms-sell-similar-but-not-identical-prod\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/a-market-situation-when-many-firms-sell-similar-but-not-identical-prod\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CDS-1","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-cds-1\/"},{"@type":"ListItem","position":3,"name":"A market situation when many firms sell similar but not identical prod"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/84891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=84891"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/84891\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=84891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=84891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=84891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}