JAMB Economics 1997 Question 19

Question 19

Market Structures

A market where there are many differentiated products is called

  1. A.monopoly
  2. B.perfect competition
  3. C.monopolistic competition
  4. D.oligopoly.
Show the answer and explanation

Answer: C (monopolistic competition)

Explanation

Monopolistic competition has many sellers, each selling a product slightly different (by brand, quality or packaging) from the others.