Asked by Emily Keith on Jun 19, 2024
Verified
Which of the following is a characteristic of monopolistically competitive industries?
A) significant barriers to entry
B) strategic behavior
C) product differentiation
D) a small number of firms
Strategic Behavior
Actions taken by firms or individuals that consider the responses or reactions of other participants and attempt to influence outcomes.
Product Differentiation
The method of differentiating a product or service from competitors in the marketplace to enhance its appeal to a specific target audience.
Barriers
Obstacles that prevent new competitors from easily entering an industry or area of business.
- Learn to identify the essential characteristics of a monopolistically competitive market, which encompass the presence of a variety of firms, the differentiation in products offered, and negligible entry restrictions.
- Identify the strategic behaviors firms in monopolistically competitive markets may exhibit.
Verified Answer
Learning Objectives
- Learn to identify the essential characteristics of a monopolistically competitive market, which encompass the presence of a variety of firms, the differentiation in products offered, and negligible entry restrictions.
- Identify the strategic behaviors firms in monopolistically competitive markets may exhibit.
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