Question

On the basis of given characteristics in the following image Identify the market form?

Options

• Perfect competition

• Monoplistic competition

• Monopoly

• Oligopoly

Answer 1

Monoplistic competition

Explanation:

Monopolistic competition is characterized by a large number of sellers providing differentiated (non-identical) products that are close alternatives for one another. Because these products are unique in terms of branding, design, or quality, businesses must expend significant advertising and selling costs in order to attract customers and develop brand loyalty.