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Question
In monopolistic competition, there are ______.
Options
Few firms selling differentiated products.
Large number of firms selling differentiated products.
Large number of firms selling homogeneous products.
Few firms selling a homogeneous products.
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Solution
In monopolistic competition, there are large number of firms selling differentiated products.
Explanation:
The monopolistic competition involves many enterprises, each selling a differentiated product. These products are similar but not identical, allowing businesses to maintain some pricing control while competing in the marketplace.
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Match the following and select the correct option.
| Column I | Column II | ||
| (i) | Perfectly elastic demand | (A) | Oligopoly |
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Jeans
Why do producers incur high selling costs in an imperfect market?
Name the characteristic which makes monopolistic competition different from perfect competition.
