Question

On the basis of above characteristics, identify the market form?

Options

• Perfect competition

• Monopolistic competition

• Monopoly

• Oligopoly

Answer 1

Monopolistic competition

Explanation:

A large number of consumers and sellers, product differentiation in which goods are not identical but serve as close alternatives, and the need for high advertising/selling expenditures to attract customers. These features set it apart from perfect competition (when items are identical and there are no advertising expenditures) and monopoly (with a single seller).