In ________ seller creates products differentiation. (competition / perfect competition / pure competition / monopolistic competition), Fill in the blank with appropriate alternative given in the bracket.
Answers
Monopolistic competition
Answer: Monopolistic competition
Explanation:
In Monopolistic competition seller creates products differentiation.
A Monopolistic market structure is reflected by a large number of small firms, who are involved is selling somewhat identical products but not exactly the same products sold by every firms. This type of market enjoy freedom of entry and exit from the industry and has immense knowledge of technology and price.
Monopolistic market is highly competitive but they still holds a certain degree of market control.
Monopolistic competition can be considered as a hybrid market clubbed between monopoly and perfect competition.
For example compared to monopoly market condition each firm under the monopolistic structure enjoys market control and like perfect competition, monopolistic structure features quite a high number of competitive firms.
Hope this helps.