Do you understand monopolistic competition?

This quiz tests your knowledge of market structures examining the area of monopolistic competition

published on March 16, 2011
1/5

Monopolistic competition involves

Many firms selling homogenous products
Many firms selling similar, but not identical products
A few firms selling similar, but not identical products
2/5

Horizontally differentiated products differ

In quality
In various product characteristics to appeal to distinct consumer groups
3/5

Product differentiation can be achieved by

Hint: 1 choice
Branding
Commitment devices
Vertical differentiation
All of the above
4/5

Sales of identical goods or services can be transacted at different prices from the same provider. What is this known as?

5/5

In monopolistic competition

There are barriers to entry
There are no barriers to entry