2017 · Q41
Which one of the following is not a feature of monopolistic competition?
Indian EconomyGrowth and sectors
- ALarge number of buyers and sellers in the market
- BDifferentiated products constitute the market
- CProduct in the market is homogeneous
- DSelling costs are used for sale promotion
Explanation
Monopolistic competition, as analysed by Chamberlin, features a large number of buyers and sellers, differentiated products, and selling costs (advertising) for sales promotion. A homogeneous product is the defining feature of perfect competition, so C is the statement that is not a feature of monopolistic competition.