GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Monopolistic competition constitutes
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Many firms producing differentiated product
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Many firms producing close substitutes
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Single firm producing close substitutes
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None of these
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Explanation:
Detailed explanation-1: -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 product is sold, intangible aspects of the product, and perceptions of the product.
Detailed explanation-2: -monopolistic competition A market structure in which many firms sell a differentiated product into which entry is relatively easy in which the firm has some control over its product price and in which there is considerable nonprice competition.
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