{"id":85273,"date":"2025-06-01T03:10:44","date_gmt":"2025-06-01T03:10:44","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=85273"},"modified":"2025-06-01T03:10:44","modified_gmt":"2025-06-01T03:10:44","slug":"which-of-the-following-factors-signify-monopolistic-competition-sele","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-factors-signify-monopolistic-competition-sele\/","title":{"rendered":"Which of the following factors signify monopolistic competition ?\nSele"},"content":{"rendered":"<p>Which of the following factors signify monopolistic competition ?<br \/>\nSelect the correct answer using the code given below :<\/p>\n<ul>\n<li>1. Differentiated products<\/li>\n<li>2. Large number of buyers and sellers<\/li>\n<li>3. Barriers to entry<\/li>\n<li>4. Homogeneous products<\/li>\n<\/ul>\n<p>[amp_mcq option1=&#8221;1 and 2 only&#8221; option2=&#8221;1, 2 and 3 only&#8221; option3=&#8221;3 and 4 only&#8221; option4=&#8221;2 and 4 only&#8221; correct=&#8221;option1&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC CDS-1 &#8211; 2022<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-cds-1-2022.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-cds-1-2022\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe factors signifying monopolistic competition are 1 and 2 only.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nMonopolistic competition is a market structure characterized by:<br \/>\n1.  Differentiated products: Firms sell products that are close substitutes but not identical (e.g., through branding, quality, features, location). This gives firms some degree of market power. This factor is correct.<br \/>\n2.  Large number of buyers and sellers: There are many firms, each relatively small compared to the overall market, and many buyers. This factor is correct.<br \/>\n3.  Barriers to entry: Monopolistic competition is characterized by low barriers to entry and exit, unlike monopolies or oligopolies. Significant barriers to entry would prevent new firms from joining when profits are high. This factor is incorrect.<br \/>\n4.  Homogeneous products: Homogeneous products are characteristic of perfect competition (where products are identical), not monopolistic competition. This factor is incorrect.<br \/>\nThus, only factors 1 and 2 are characteristic of monopolistic competition among the listed options.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nExamples of monopolistically competitive markets include restaurants, hairdressers, clothing stores, and consumer electronics. Firms in these markets differentiate their products through branding, advertising, and other non-price strategies.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Which of the following factors signify monopolistic competition ? Select the correct answer using the code given below : 1. Differentiated products 2. Large number of buyers and sellers 3. Barriers to entry 4. Homogeneous products [amp_mcq option1=&#8221;1 and 2 only&#8221; option2=&#8221;1, 2 and 3 only&#8221; option3=&#8221;3 and 4 only&#8221; option4=&#8221;2 and 4 only&#8221; correct=&#8221;option1&#8243;] &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Which of the following factors signify monopolistic competition ?\nSele\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-factors-signify-monopolistic-competition-sele\/#more-85273\">Detailed Solution<span class=\"screen-reader-text\">Which of the following factors signify monopolistic competition ?<br \/>\nSele<\/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":[1108,1112],"class_list":["post-85273","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-1","tag-1108","tag-economic-and-social-development","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following factors signify monopolistic competition ? Sele<\/title>\n<meta name=\"description\" content=\"The factors signifying monopolistic competition are 1 and 2 only. Monopolistic competition is a market structure characterized by: 1. Differentiated products: Firms sell products that are close substitutes but not identical (e.g., through branding, quality, features, location). This gives firms some degree of market power. This factor is correct. 2. Large number of buyers and sellers: There are many firms, each relatively small compared to the overall market, and many buyers. This factor is correct. 3. Barriers to entry: Monopolistic competition is characterized by low barriers to entry and exit, unlike monopolies or oligopolies. Significant barriers to entry would prevent new firms from joining when profits are high. This factor is incorrect. 4. Homogeneous products: Homogeneous products are characteristic of perfect competition (where products are identical), not monopolistic competition. This factor is incorrect. Thus, only factors 1 and 2 are characteristic of monopolistic competition among the listed options.\" \/>\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\/which-of-the-following-factors-signify-monopolistic-competition-sele\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following factors signify monopolistic competition ? Sele\" \/>\n<meta property=\"og:description\" content=\"The factors signifying monopolistic competition are 1 and 2 only. Monopolistic competition is a market structure characterized by: 1. Differentiated products: Firms sell products that are close substitutes but not identical (e.g., through branding, quality, features, location). This gives firms some degree of market power. This factor is correct. 2. Large number of buyers and sellers: There are many firms, each relatively small compared to the overall market, and many buyers. This factor is correct. 3. Barriers to entry: Monopolistic competition is characterized by low barriers to entry and exit, unlike monopolies or oligopolies. Significant barriers to entry would prevent new firms from joining when profits are high. This factor is incorrect. 4. Homogeneous products: Homogeneous products are characteristic of perfect competition (where products are identical), not monopolistic competition. This factor is incorrect. Thus, only factors 1 and 2 are characteristic of monopolistic competition among the listed options.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-factors-signify-monopolistic-competition-sele\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T03:10:44+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":"Which of the following factors signify monopolistic competition ? Sele","description":"The factors signifying monopolistic competition are 1 and 2 only. Monopolistic competition is a market structure characterized by: 1. Differentiated products: Firms sell products that are close substitutes but not identical (e.g., through branding, quality, features, location). This gives firms some degree of market power. This factor is correct. 2. Large number of buyers and sellers: There are many firms, each relatively small compared to the overall market, and many buyers. This factor is correct. 3. Barriers to entry: Monopolistic competition is characterized by low barriers to entry and exit, unlike monopolies or oligopolies. Significant barriers to entry would prevent new firms from joining when profits are high. This factor is incorrect. 4. Homogeneous products: Homogeneous products are characteristic of perfect competition (where products are identical), not monopolistic competition. This factor is incorrect. Thus, only factors 1 and 2 are characteristic of monopolistic competition among the listed options.","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\/which-of-the-following-factors-signify-monopolistic-competition-sele\/","og_locale":"en_US","og_type":"article","og_title":"Which of the following factors signify monopolistic competition ? Sele","og_description":"The factors signifying monopolistic competition are 1 and 2 only. Monopolistic competition is a market structure characterized by: 1. Differentiated products: Firms sell products that are close substitutes but not identical (e.g., through branding, quality, features, location). This gives firms some degree of market power. This factor is correct. 2. Large number of buyers and sellers: There are many firms, each relatively small compared to the overall market, and many buyers. This factor is correct. 3. Barriers to entry: Monopolistic competition is characterized by low barriers to entry and exit, unlike monopolies or oligopolies. Significant barriers to entry would prevent new firms from joining when profits are high. This factor is incorrect. 4. Homogeneous products: Homogeneous products are characteristic of perfect competition (where products are identical), not monopolistic competition. This factor is incorrect. Thus, only factors 1 and 2 are characteristic of monopolistic competition among the listed options.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-factors-signify-monopolistic-competition-sele\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T03:10:44+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\/which-of-the-following-factors-signify-monopolistic-competition-sele\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-factors-signify-monopolistic-competition-sele\/","name":"Which of the following factors signify monopolistic competition ? Sele","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T03:10:44+00:00","dateModified":"2025-06-01T03:10:44+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The factors signifying monopolistic competition are 1 and 2 only. Monopolistic competition is a market structure characterized by: 1. Differentiated products: Firms sell products that are close substitutes but not identical (e.g., through branding, quality, features, location). This gives firms some degree of market power. This factor is correct. 2. Large number of buyers and sellers: There are many firms, each relatively small compared to the overall market, and many buyers. This factor is correct. 3. Barriers to entry: Monopolistic competition is characterized by low barriers to entry and exit, unlike monopolies or oligopolies. Significant barriers to entry would prevent new firms from joining when profits are high. This factor is incorrect. 4. Homogeneous products: Homogeneous products are characteristic of perfect competition (where products are identical), not monopolistic competition. This factor is incorrect. Thus, only factors 1 and 2 are characteristic of monopolistic competition among the listed options.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-factors-signify-monopolistic-competition-sele\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-factors-signify-monopolistic-competition-sele\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-factors-signify-monopolistic-competition-sele\/#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":"Which of the following factors signify monopolistic competition ? 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