Differentiated products is a characteristic of: (Choose the correct alternative):
(a) Monopolistic competition only
(b) Oligopoly only
(c) Both monopolistic competition and oligopoly
The correct option is (c). All firms in a monopolistic competitive market and oligopoly market sell a product which is not a perfect substitute but a close substitute of each other. Hence, the characteristic of a differentiated product prevails under both forms of market.