Question

Which of the following is not a characteristic of monopolistic competition?

• A. Ease of entry into the industry.
• B. Product differentiation.
• C. A relatively large number of sellers.
• D. A homogeneous product.

Answer 1

The correct option is D

A homogeneous product.

Answer d) A homogeneous product.

Monopolistic competition portrays an industry wherein many firms offer services and products that are comparable (however noticeably flawed) substitutes. Barriers to exit and entry in a monopolistic cutthroat industry are low, and the choices of any one firm don’t straightforwardly influence those of its rivals.