Question

The gizmo industry has the following characteristics: over 600 producers with no one producer furnishing more than .5% of the industry’s total output; gizmos produced by different firms carry unique brand names and labels; there are no significant barriers to entry to the gizmo market; there is no economic profit in the long run. The gizmo market is best described as what type of market?

Answer 1

Answer:

monopolistic competition

Explanation:

Based on the scenario being described within the question it can be said that the gizmo market is best described as a monopolistic competition. This is a type of competition that is not perfect, mainly because many producers tend to sell their products that have very specific differences making them unsuitable substitutes of one another.