Question

Which of the following market types
has a large number of firms that sell
similar but slightly different
products?
24.4
O perfect competition
O monopoly
O monopolistic competition
O oligopoly​

Answer 1

The Correct Answer is,

O monopolistic competition

Explanation:

Monopolistic Competition market types has large number of firms that sell similar but slightly different products.

Monopolistic competition is characteristic of an industry in which multiple firms offer products or services that are similar. In such a monopolistic competitive market the barriers to entry and exit are low, and the decisions of any one firm do not directly affect the decisions of its competitors.

Answer 2

The market type described in the given question is option 3rd: Monopolistic competition.

• This is one of the aspects of business and marketing that is used in order to thrive in today's competitive economic environment.
• It combines the marketing traits of both monopoly and perfect competitive businesses.
• Similar types of items compete in the market in this category of marketing.
• All of these items belong within the same monopolistic category, yet they are sold by various sellers or are under distinct business or brand names.
• Although the composition and contents of these items are not identical, they serve the same purpose for the clients.
• For example, a shop selling many brands of soap is said to be as monopolistic competition because all soap firms compete in the market.
• As a result, the third choice is right in this situation.