Asked by Elena Contreras on Jun 05, 2024
Verified
An industry that has many firms producing a differentiated product would be classified as
A) perfectly competitive
B) a monopoly
C) monopolistically competitive
D) None of these choices are correct.
Differentiated Product
A product that differs from its competitors based on features, quality, branding, or some other characteristics.
Perfectly Competitive
A market structure where many firms offer identical products, entry and exit are easy, and no individual buyer or seller has any influence over prices.
Monopoly
A market structure characterized by a single seller or company dominating the entire market, leading to limited competition.
- Gain an understanding of the principles and traits of monopolistic competition.
- Acknowledge the contribution of distinguishing products and competing without focusing on price in scenarios of monopolistic competition.
Verified Answer
NA
Nur Amelia Ahmad ZakariaJun 08, 2024
Final Answer :
C
Explanation :
In a monopolistically competitive industry, there are many firms producing similar but differentiated products. This means that although there is competition, each firm has some control over the price they charge due to the uniqueness of their product. Perfectly competitive industries have homogeneous products and no control over price, while monopolies have no competition at all.
Learning Objectives
- Gain an understanding of the principles and traits of monopolistic competition.
- Acknowledge the contribution of distinguishing products and competing without focusing on price in scenarios of monopolistic competition.