Question

The market structure with many firms producing differentiated products is:
Please choose the correct answer from the following choices, and then select the submit answer button.
perfect competition.
oligopoly.
monopoly.
monopolistic competition.

Answer 1

Answer:

monopolistic competition

Explanation:

Under monopolistic competition, the market structure is characterized by a large number of many producers selling differentiated products. Products sold are similar but not identical in terms of brand, quality or pricing. There is relative freedom of entry into and exit out of the industry for producers under this market structure.