question archive One difference between oligopoly and monopolistic competition is that A
One difference between oligopoly and monopolistic competition is that A
Subject:MarketingPrice:2.88 Bought3
One difference between oligopoly and monopolistic competition is that
A. a monopolistically competitive industry has fewer firms.
B. fewer firms compete in oligopoly than in monopolistic competition.
C. in monopolistic competition, the products are identical.
D. monopolistic competition has barriers to entry.
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The correct answer isB. fewer firms compete in oligopoly than in monopolistic competition.
The monopolistic competitive market has relatively low barriers to entry, so there are many firms. An oligopoly has significant entry barriers like high capital requirements that keep the market size to a few firms. Hence, fewer firms compete in oligopoly than in monopolistic competition.
