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What is the key feature of monopolistic competition?
  • a)
    Large number of buyers and sellers.
  • b)
    Identical products produced by all firms.
  • c)
    Complete information available to consumers and producers.
  • d)
    Product differentiation among firms.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
What is the key feature of monopolistic competition?a)Large number of ...
The key feature of monopolistic competition is product differentiation among firms. In monopolistic competition, there are many sellers, but each produces a product that is slightly different from those of its competitors. These differences can be in terms of quality, branding, packaging, or other attributes. This product differentiation allows firms to have some degree of monopoly power over their own product, as consumers may have preferences for one brand or variation over another.
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What is the key feature of monopolistic competition?a)Large number of buyers and sellers.b)Identical products produced by all firms.c)Complete information available to consumers and producers.d)Product differentiation among firms.Correct answer is option 'D'. Can you explain this answer?
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