Question

Question 311 pts

Which of the following is not a characteristic of monopolistic competition?

Group of answer choices

firms have some influence over price

large number of competing firms

a single firm dominates the market

products sold are similar, but not identical

Answer 1

As we know that there are different types of market structures as:-

Perfect competition.

Monopoly.

Oligopoly and

Monopolistic competition.

Monopolistic competition is a market structure in which large number of firm's sell or produce differentiated products. Monopolistic competition is a market structure defined by four main characteristics: large numbers of buyers and sellers; perfect information; low entry and exit barriers; similar but differentiated goods. The concept of monopolistic competition is given by Chamberlain.

The correct option is (c).

A single firm dominates the market.

This is because in monopolistic competition large number of firm's are in market. This is the feature of monopoly market structure.

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