Asked by Henriette Uwimbabazi on Jul 04, 2024

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An industry with a large number of relatively small firms producing _____ products in a market with easy entry and exit is a(n) _____.

A) similar;monopoly
B) identical;monopolistic competition
C) differentiated;oligopoly
D) differentiated;monopolistic competition

Differentiated Products

Goods and services that are distinguished from similar products by characteristics like quality, design, performance, and branding.

Monopolistic Competition

A market structure characterized by many firms selling products that are substitutes but differentiated from each other, leading to some degree of market power.

Easy Entry And Exit

A characteristic of competitive markets where firms can freely enter or leave the market with minimal barriers, ensuring competitive prices and efficiency.

  • Grasp the key features of monopolistic competition, which include the differentiation of products and the criteria for market entry and exit.
  • Pinpoint examples of products and industries that exhibit characteristics of monopolistic competition.
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GH
Gerardo HerreraJul 11, 2024
Final Answer :
D
Explanation :
An industry with a large number of relatively small firms producing differentiated products in a market with easy entry and exit is a monopolistic competition.