The key characteristics of a monopolistically competitive market structure include Select one: A. many small (relative to the total market) sellers acting independently. B. all sellers sell a homogeneous product. C. sellers have no incentive to advertise their products. D. barriers to entry are strong.

Question

Business

Denzel Whitney

27 April, 02:53

The key characteristics of a monopolistically competitive market structure include Select one: A. many small (relative to the total market) sellers acting independently. B. all sellers sell a homogeneous product. C. sellers have no incentive to advertise their products. D. barriers to entry are strong.

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Answers (1)

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Abagail Moran · Answer 1

The correct answer is letter "A": many small (relative to the total market) sellers acting independently.

Explanation:

Monopolistic Competition occurs in markets that have several competitors that sell identical goods or services but act independently. Restaurants, supermarkets, and clothing stores, for instance. In monopolistic competition, those similar products and services are not perfect substitutes from one another. The barriers to entry and exit in these industries are low and the decisions taken by one firm directly do not affect its rivals.