Question:medium
Name the type of market competition in which there are a large number of sellers in the market for a commodity, but the product of each seller differs in some respect from the product of the other sellers; and product differentiation is the cornerstone.
Name the type of market competition in which there are a large number of sellers in the market for a commodity, but the product of each seller differs in some respect from the product of the other sellers; and product differentiation is the cornerstone.
Show Hint
Monopolistic competition exists when many sellers offer similar but differentiated products, such as in the restaurant or clothing industries.
Updated On: Feb 18, 2026
- Monopoly
- Perfect Competition
- Monopolistic Competition
- Oligopoly
Show Solution
The Correct Option is C
Solution and Explanation
Monopolistic competition features numerous sellers, each offering slightly different products. Although the products are comparable, each seller's version possesses unique attributes, fostering competition based on product differentiation rather than solely on price.
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