Question

Monopolistic competition means

a. a market situation where competition is based entirely on product differentiation and advertising.
b. a large number of firms producing a standardized product
c. mariy firms Rroducine differentiated products,
d. a few firms prodycing a standardizod product

Answer 1

Monopolistic competition refers to a market where many firms sell differentiated products. Each firm has a mini-monopoly on its particular style or brand, but also competes with other firms offering similar but different products. Option c.

Step-by-step explanation:

Monopolistic competition is a market situation where many firms sell differentiated products. These differentiated products can be distinguished by characteristics, location, intangible aspects, and perceptions.

Examples of monopolistic competition include stores selling different styles of clothing, restaurants offering a variety of food, and products like golf balls or beer with different brand names. In monopolistic competition, each firm has a mini-monopoly on its particular style or brand, but it also competes with other firms offering similar but different products.

So Option c is correct.