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.
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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
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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.
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