Answer: Many producers are selling slightly differentiated products. Explanation: Monopolistic competition is a market structure that includes many producers providing products or services that are almost the same, but not quite identical.
Why does monopolistic competition exist?
Monopolistic competition occurs when an industry has many firms offering products that are similar but not identical. Unlike a monopoly, these firms have little power to set curtail supply or raise prices to increase profits.
What is monopolistic situation?
A monopolistic market is a theoretical condition that describes a market where only one company may offer products and services to the public. In a purely monopolistic model, the monopoly firm can restrict output, raise prices, and enjoy super-normal profits in the long run.
Which if the following best describes a situation where an oligopoly exists?
Which best describes a situation where an oligopoly exists? A small number of producers command nearly the entire market for a certain good or service. Many producers are selling slightly differentiated products that are close substitutes of each other.
Which benefit is the result of competition?
The benefit of the result of competition is increased efficiency. A: Increased efficiency can be defined as the ability to do something on time i.e without wasting time. Efficiency can be increased by companies when they give duties to qualified employees who will do their job well.
What is the difference between perfect and monopolistic competition?
In a monopolistic market, there is only one firm that dictates the price and supply levels of goods and services. A perfectly competitive market is composed of many firms, where no one firm has market control. In the real world, no market is purely monopolistic or perfectly competitive.
