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Irina18 [472]
3 years ago
5

Which set of characteristics describes a market that has monopolistic competition?

Social Studies
1 answer:
Phantasy [73]3 years ago
6 0

Answer:

Explanation: Monopolistic competition occurs when large number of firms sell similar but not identical products and competes with each other in other factors aside price.

Characteristics include:

1. Large number of sellers

2. Goods are close substitute

3. There is free entry into the market provided the new firm comes up with unique features and different variety to meet existing competition in the industry.

4. An individual firm is not a price taker but has some influence over the price of its product.

5. Firms compete in other factors aside price like promotional activities

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