Under monopolistic competition thereA) is product standardization.B) is perfect price discrimination.C) are too many firms producing over-differentiated products.D) are many firms producing differentiated goods and services.

Question

Jaelynn Banks · Accepted Answer

Final Answer : D, Explanation :  Monopolistic competition refers to a market structure in which there are many firms producing differentiated goods and services, which means they are not perfect substitutes for each other. This leads to a certain degree of market power for each firm as they can differentiate their products and charge a slightly higher price than their competitors. Thus, option D is the correct choice. Option A is incorrect because monopolistic competition involves product differentiation, which means there is no standardization. Option B is incorrect because perfect price discrimination requires the ability to charge different prices for each unit of the same product, which is not possible in a monopolistically competitive market. Option C is incorrect because while there may be over-differentiation of products, this does not distinguish monopolistic competition from other market structures.

Under monopolistic competition there

A) is product standardization.
B) is perfect price discrimination.
C) are too many firms producing over-differentiated products.
D) are many firms producing differentiated goods and services.

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