Asked by Erika Driesen on Jul 03, 2024
Verified
Which of the following is not a basic characteristic of monopolistic competition?
A) the use of trademarks and brand names
B) recognized mutual interdependence
C) product differentiation
D) a relatively large number of sellers
Monopolistic Competition
A market structure characterized by many firms selling slightly differentiated products, allowing for some degree of market power and price control.
Trademarks
Distinctive signs, designs, or expressions that identify products or services as originating from a specific source, protected by law.
Mutual Interdependence
A condition in oligopolistic markets where the actions of one firm directly affect the outcomes of other firms within the market.
- Familiarize oneself with the concept and qualities of monopolistic competition.
- Acquire knowledge regarding the effect of product differentiation on monopolistic competition's market layout.
Verified Answer
DB
Daniel Bocanegra DiazJul 10, 2024
Final Answer :
B
Explanation :
In monopolistic competition, firms act independently rather than recognizing mutual interdependence, which is more characteristic of oligopoly where a few firms have a significant market share and their decisions affect each other.
Learning Objectives
- Familiarize oneself with the concept and qualities of monopolistic competition.
- Acquire knowledge regarding the effect of product differentiation on monopolistic competition's market layout.