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Sergeu [11.5K]
3 years ago
8

A monopolistically competitive industry is characterized by a. many firms selling products that are similar but not identical. b

. many firms selling identical products. c. a few firms selling products that are similar but not identical. d. a few firms selling highly different products.
Business
1 answer:
UNO [17]3 years ago
7 0

Answer:

A monopolistically competitive industry is characterized by

a. many firms selling products that are similar but not identical.

Explanation:

A monopolistic competition is a form of imperfect competition with many firms operating in the industry.  For such an industry, the goods or services are differentiated, such that one firm's goods or services can easily be associated with the producer.  This is mostly achieved through branding and the use of trademarks.  Each firm, therefore, competes with many other competitors, but they limit their competition by differentiating their products so that consumers would have preference for one against the other, depending on their perceived value.

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<u></u>

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