The key feature that makes Monopolistic Competition different from Oligopoly is

Question

The key feature that makes Monopolistic Competition different from Oligopoly is
A. Product differentiation B. Monopolistic Competitors attempt to maximize profits, but Oligopolists do not. C. Monopolistic Competitors generates Economic (Allocative) Efficiency in the long run, but Oligopoly does not. D. Barriers to entry are low. E. None of the above. The key feature that makes Monopolistic Competition different from Oligopoly is
A. Product differentiation B. Monopolistic Competitors attempt to maximize profits, but Oligopolists do not. C. Monopolistic Competitors generates Economic (Allocative) Efficiency in the long run, but Oligopoly does not. D. Barriers to entry are low. E. None of the above. The key feature that makes Monopolistic Competition different from Oligopoly is
A. Product differentiation B. Monopolistic Competitors attempt to maximize profits, but Oligopolists do not. C. Monopolistic Competitors generates Economic (Allocative) Efficiency in the long run, but Oligopoly does not. D. Barriers to entry are low. E. None of the above.

Explanation / Answer

The right answer is option D.

Explanation: In monopolistic competition, there are a large number of sellers selling differentiated products. In an oligopolistic market, there are few large sellers selling differentiated or undifferentiated products. The entry barrier in monopolistic competition is low and the entry barrier in oligopolistic competition is high.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.