Question:
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: Sep 17, 2025
- Monopoly
- Perfect Competition
- Monopolistic Competition
- Oligopoly
Hide Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Monopolistic competition is characterized by a large number of sellers offering differentiated products. While the products are similar, each seller’s product is unique in some way, creating competition based on differentiation, not just price.
Was this answer helpful?
0
0
Top Questions on Economics
- What is "Micro-Economics"?
- What are different means of production and the rewards given to them?
- Under perfect competition, the demand curve of a firm is
- Match List-I with List-II: \[ \begin{array}{|c|l|c|l|} \hline \textbf{List-I} & & \textbf{List-II} & \\ \hline (A) & \text{Analysis assumes that level of utility can be expressed in numbers.} & (I) & \text{Cardinal Utility} \\ \hline (B) & \text{Change in total utility due to consumption of one additional unit of a commodity.} & (II) & \text{Law of Diminishing Marginal Utility} \\ \hline (C) & \text{Marginal utility from consuming each additional unit of a commodity declines as its consumption increases.} & (III) & \text{Marginal Utility} \\ \hline (D) & \text{The amount of mangoes that the consumer has to forego in order to get an additional banana, her total utility level being the same.} & (IV) & \text{Marginal Rate of Substitution} \\ \hline \end{array} \]
- When an individual buys foreign goods, this spending is known as ........
View More Questions
Questions Asked in CUET PG exam
- Arrange the following events related to India-Pakistan relations in a chronological order.
A. Operation Gibraltar
B. Kargil War
C. Karachi Agreement
D. Indus Water Treaty
- CUET (PG) - 2025
- India’s Foreign Policy
- Neglecting the delays due to the logic gates in the circuit shown in the figure, the decimal equivalent of the binary sequence [ABCD] of initial logic states, which will not change with the clock, is
- CUET (PG) - 2025
- Digital Electronics and Logic Gates
- What is the least number which, when divided by 7, 12 and 15 leaves 1 as the remainder in each case?
- CUET (PG) - 2025
- LCM and HCF
- Rearrange the following sentences to form a coherent and meaningful paragraph.
(A) Lack of knowledge about the diet is what makes people raise questions.
(B) This diet often characterized as restrictive, is associated with health benefits; however, it raises concerns.
(C) The vegan diet has gained momentum in recent years.
(D) There is a controversy about this diet with some people supporting it and others questioning its benefits.- CUET (PG) - 2025
- Logical Reasoning
- If a group comprises of five persons A, B, C, D and E, then how many persons are taller than E?
Statement (I): A is taller than B and B is shorter than A and E only.
Statement (II): C is shorter than A and A is shorter than E.- CUET (PG) - 2025
- Logical Reasoning
View More Questions