What is the type of competition that occurs in a competitive market without identical producers? a. monopolistic b. pure competition c. an oligopoly

Monopolistic competition is a type of competition that occurs in a competitive market without identical producers.

Further explanationMonopolistic competition  It is a market structure that has many small firms competing against each other.These firms sell similar products that are slightly differentiated in terms of branding, packaging, etc.Assumptions of monopolistic competition  Free entry and exit to the market  Products are differentiated  Consumer’s preference is applicable  All firms maximize profits  Other types of market structuresOligopoly  

A market structure that is dominated by few firms thus there is limited competition.  

AssumptionsProducts may identical or differentiated  Firms maximize profit  There is only few firms in the market  There is barriers to market entry or exit  Firms can set their prices  Monopoly  

A type of market structure where there is a single producer and many buyers.

A single firm controls the market as it has the highest market power and consumers lack other options.  

AssumptionsMonopolist maximizes the profit  Monopoly sets the price  High barriers to exit and entry to the market  A sole firm dominates and controls the market  Perfectly competitive market  

This is a type of market structure that is hypothetical and is considered to have a very high level of competition.  

Characteristics of perfectly competitive marketNo barriers of entry or exit to the market  Goods produced by firms are identical  Units of input such as units of labor are also identical  A single cannot influence the market price or prevailing market conditions.There are many buyers and sellers  Buyers and sellers make normal profits in long runBuyers and sellers are price takers  There is perfect knowledge by the consumers and sellers

Keywords: Market structure, Monopolistic competition

Learn more about:Monopolistic competition: Features of Monopolistic competition: Types of market structures:

Level: High school  

Subject: Business  

Topic: Market structures  

Sub-topic: Monopolistic competition

6, 4, 5, 1 are true. the others are false.