# The use of word “competition” in the name of the market structure called “monopolistic competition” refers to the fact that ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: The use of word “competition” in the name of the market structure called “monopolistic competition” refers to the fact that ? Correct Answer: A. there are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# The use of word “competition” in the name of the market structure called “monopolistic competition” refers to the fact that ?

Direct Answer & Quick Reference

The correct option is **A. there are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market**.

A. there are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market **(Correct Answer)**

B. Monopolistically competitive firms face a downward-sloping demand curve just like competitive firms.

C. Monopolistically competitive firms charge prices equal to the minimum of their average total cost just like competitive firms.

D. The products are differentiated in a monopolistically competitive market just like in a competitive market.

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Verified Key: A. there are many sellers in a monopolistically competitive market and there is free entry and exit in the market just like a competitive market
Solved by 2,361+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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*Source: https://test-prep.blog/mcq/the-use-of-word-competition-in-the-name-of-the-market-structure-called-monopolis-b98b24a5-ef51-413b-a4e2-14e3bbc30c7c*
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