Which of the following is not a characteristic of a monopolistically competitive market?

Free entry and exit

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Abnormal profits in the long run

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Many sellers

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Differentiated products

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Abnormal profits in the long run
Monopolistic competition is a market structure where there are large number of sellers selling differentiated products. There is also no barriers to entry. Every body can fix the price as per their choice. Hence, abnormal profits in the long run is not a characteristic of a monopolistically competitive market.

Suggest Corrections