Question

In monopolistic competition Question 35 options: firms produce and sell an identical product. a large number of firms compete. firms face high barriers to entry. firms face perfectly elastic demand for their product. g

Answer 1

b. a large number of firms compete.

Step-by-step explanation:

In monopolistic competition, a large number of firms compete.

A monopolistic competitive industry is that form of market in which there is large number of buyers and sellers and firm sells differentiated product based on quality, size, shape. So, in monopolistic competitive industry, firms produce and sell varieties of product, a large number of firms compete, firms does not face high barriers to entry and firms does not face perfectly elastic demand for their product.