2022 · Q62
Which of the following factors signify monopolistic competition?
- 1Differentiated products
- 2Large number of buyers and sellers
- 3Barriers to entry
- 4Homogeneous products
Select the correct answer using the code given below.
General KnowledgeIndian Economy
- A1 and 2 only
- B1, 2 and 3 only
- C3 and 4 only
- D2 and 4 only
Explanation
Monopolistic competition (e.g., restaurants, toothpaste brands) features many buyers and sellers selling DIFFERENTIATED products, with free entry and exit. Barriers to entry and homogeneous products belong to oligopoly and perfect competition respectively — so only 1 and 2 signify it.