In a monopolistic competitive industry, a. there are significant barriers to exit. b. there are few sellers. c. there are significant barriers to entry. d. each firm in the industry produces a slightly differentiated product.

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03-12-2021
Business

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In a monopolistic competitive industry, a. there are significant barriers to exit. b. there are few sellers. c. there are significant barriers to entry. d. each firm in the industry produces a slightly differentiated product.

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Tundexi Tundexi · Answer 1 · 2021-12-07T07:17:00-05:00

Each firm in the monopolistic competitive industry produces a slightly differentiated product.

The monopolistic competition occurs where competitive firms produces or manufactures products or services that are similar and close substitutes to one another.

The characteristics of the monopolistically competitive market includes:

presence of many sellers in the market
easy entrance and exit of consumers in the market
differentiated products in the market.

Therefore, the Option D is correct because each firm in the monopolistic competitive industry produces a slightly differentiated product.

Read more about monopolistic competition:

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