Question

In a market with ________, there are many sellers, each offering a slightly different product. Firms can differentiate products and focus on nonprice competition.

A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) a pure monopoly
E) socialism

Answer 1

Monopolistic competition is a market structure where many firms sell differentiated products.

Correct option is B.

Step-by-step explanation:

Monopolistic competition refers to a market where many firms sell differentiated products. Differentiated products can arise from characteristics of the good or service, location from which the firm sells the product, intangible aspects of the product, and perceptions of the product.