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Which type of market structure has many small firms that spend money in order to differentiate their products through advertising

User NFE
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2 Answers

5 votes

Answer:

Monopolistic competition

User Hashir Sarwar
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7 votes

Answer:

c. Monopolistic Competition

Step-by-step explanation:

Multiple Options "a. Monopoly b. Oligopoly c. Monopolistic competition d. Perfect competition"

Monopolistic Competition is the type of market structure that has many small firms that spend money in order to differentiate their products through advertising. Here, the products are differentiated and the buyers are made aware of these differences through advertising and promotion. These costs represent a significant part of the total cost under monopolistic competition.

User Enthusiast Martin
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