Question

What are the three characteristics of a monopolistically competitive market?

O many buyers and seller
O few sellers
O free entry and exit
O barriers to entry
O identical products
O unique products
O one seller
O differentiated products

Answer 1

A monopolistically competitive market has many buyers and sellers, free entry and exit, and differentiated products.

Step-by-step explanation:

Three Characteristics of a Monopolistically Competitive Market

1. Many buyers and sellers: In a monopolistically competitive market, there are many buyers and sellers participating. This means that there is a large number of firms competing with each other.
2. Free entry and exit: Firms can easily enter or exit the market without facing significant barriers. They have the freedom to start or close their businesses based on market conditions.
3. Differentiated products: Sellers offer unique or differentiated products in monopolistically competitive markets. These products may have characteristics, locations, or intangible aspects that set them apart from their competitors.