A market structure in which many firms sell products that are similar but not identical is known as ?
Correct answer: A. monopolistic competition
- A. monopolistic competition
- B. monopoly
- C. perfect competition
- D. oligopoly
Explanation
Monopolistic competition has many sellers offering differentiated products, such as brands that serve similar needs but are not identical. Perfect competition requires identical products, while oligopoly has only a few major sellers.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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