Q97
The major difference between perfect competition and monopolistic competition is
A.
Number of firms
B.
Differentiated product
AnswerC.
Rate of profit
D.
Free exit and entry
Answer: Option B
Solution
Answer: Option B
Solution:
The major difference between perfect competition and monopolistic competition is differentiated product. Product differentiation (or simply differentiation) is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products.