Question

A monopolistically competitive industry is characterized by A. free entry and exit and many firms selling...

A monopolistically competitive industry is characterized by

A. free entry and exit and many firms selling products that are similar but not identical

B. Blocked entry and a single firm selling a unique product

C. free entry and exit , and many firms selling an identical product

D. a few firms selling products that are similar but not identical.

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Answer #1

The answer is option a-  free entry and exit and many firms selling products that are similar but not identical

Monopolistic competition is typical of an industry in which multiple companies provide identical but not ideal replacements for goods or services. Barriers to entry and exit within a dominant monopoly market are weak, and any firm's decisions do not directly impact those of its rivals. Monopolistic rivalry is closely related to the label differentiation market strategy

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