Asked by
Verified
An industry with a large number of relatively small firms producing differentiated products in a market with easy entry and exit of firms is:
A) a monopoly.
B) a duopoly.
C) an oligopoly.
D) monopolistically competitive.
Differentiated Products
Goods that are distinguished from one another by quality, design, branding, and other features that make them unique to consumers.
Easy Entry And Exit
A market characteristic where firms can freely enter or leave the industry without substantial barriers.
Monopolistically Competitive
A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and product differentiation.
- Understand the specifics of monopolistic competition, that entail distinguishing products and the conditions for entering or exiting the marketplace.
- Clarify how monopolistic competition differs from other market structures, namely perfect competition, monopoly, and oligopoly.
Verified Answer
Learning Objectives
- Understand the specifics of monopolistic competition, that entail distinguishing products and the conditions for entering or exiting the marketplace.
- Clarify how monopolistic competition differs from other market structures, namely perfect competition, monopoly, and oligopoly.
Related questions
An Industry with Easy Entry and Exit of a Large ...
Monopolistic Competition Is Similar to Perfect Competition Because Firms in ...
A Monopolistically Competitive Industry Is Characterized by a _____ Number ...
In Monopolistic Competition ...
A Feature of Monopolistic Competition That Makes It Different from ...