Monopolistically competitive firms, like perfectly competitive firms, sell a differentiated product.

Differentiated Product

A differentiated product is a good or service that has unique attributes or qualities distinguishing it from similar products offered by competitors.

Comprehend the attributes distinguishing a monopolistically competitive market, such as numerous firms, differentiation of products, and the absence of substantial entry obstacles.
Distinguish among monopolistic competition, perfect competition, monopoly, and oligopoly by examining characteristics like price control, differentiation of product, and entry obstacles.

Verified Answer

Final Answer :

False

Explanation :

Monopolistically competitive firms sell differentiated products, while perfectly competitive firms sell homogeneous or identical products.

Learning Objectives

Comprehend the attributes distinguishing a monopolistically competitive market, such as numerous firms, differentiation of products, and the absence of substantial entry obstacles.
Distinguish among monopolistic competition, perfect competition, monopoly, and oligopoly by examining characteristics like price control, differentiation of product, and entry obstacles.