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What is true in a market structure characterized by monopolistic competition?

A )single firm dominates the market and produces similar, but differentiated products.

B)single firm dominates the market and produces a single type of product.

C)Many firms operate in the market and produce similar, but differentiated products.

D)Many firms operate in the market and produce virtually identical products.

Respuesta :

Samawati

Answer:

C)Many firms operate in the market and produce similar, but differentiated products.

Explanation:

A monopolistic market structure has many firms competing for the same customers. Although the firms sell similar products, each tries to make their products different from the rest. Each firm can set its price because the products are differentiated. Other characteristics of monopolistic competition include

  1. Freedom of entry and exit.
  2. There many sellers and buyers
  3. Each firm sets its product price

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