Q298
A market structure in which many firms sell products that are similar but not identical is known as
A.
Monopolistic competition
AnswerB.
Monopoly
C.
Perfect competition
D.
Oligopoly
Answer: Option A
Solution
Answer: Option A
Solution:
A market structure in which many firms sell products that are similar but not identical is known as Monopolistic competition. Monopolistic competition characterizes an industry in which many firms offer products or services that are similar, but not perfect substitutes. Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors.