Do you understand monopolistic competition?

This quiz tests your knowledge of market structures examining the area of monopolistic competition

published on March 16, 2011195 responses 0 4.0★ / 5

Monopolistic competition involves

Many firms selling homogenous products
Many firms selling similar, but not identical products
A few firms selling similar, but not identical products

Horizontally differentiated products differ

In quality
In various product characteristics to appeal to distinct consumer groups

Product differentiation can be achieved by

Select the one correct answers
Commitment devices
Vertical differentiation
All of the above

Sales of identical goods or services can be transacted at different prices from the same provider. What is this known as?

In monopolistic competition

There are barriers to entry
There are no barriers to entry