Question

When businesses can promote different features of their products and consumers are willing to pay more for products containing the features they desire, the competitive environment is probably

Answer 1

Monopolistic competition can promote different features of their products and consumers are willing to pay more for products containing the features that they desire.

Step-by-step explanation:

• Here many firms create similar products but they are not a substitute of any other.
• This combines monopoly and competitive market
• It is a form of "imperfect competition"
• This has emerged because the product developed by different people target the same set of audience by providing few differentiation.

Examples of monopolistic competition:

• The restaurant business
• Consumer services
• General specialist retailing
• Hotels / Pubs.\

Advantages:

• Greater ability to fund

• Research & Development

Disadvantage:

• Higher price
• Fewer incentives