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JAMB Economics 2010 Question 24

Question 24

Market Structures

One of the characteristics of monopolistic competition is that

  1. A.there is mobility of factors of production
  2. B.no single seller dominates the market
  3. C.consumers have perfect knowledge of price
  4. D.the firms are price-takers.
Show the answer and explanation

Answer: B (no single seller dominates the market)

Explanation

Monopolistic competition has many sellers of slightly different products, so no single seller dominates the market.