17
QuizMultiple Choice

Microeconomics — Test

Question 17 • Personal Finance and Economics

Which aspect of monopolistic competition gives consumers more choice?

Answer
A
Producers are more concerned about selection than profits.
B
Price is not an important factor.
C
Few barriers to market entry exist.
D
Producers rely on consumer decisions to succeed.

Explanation

Few barriers to entering a monopolistically competitive market allow many producers to compete. These producers often offer slightly different products, giving consumers more options to choose from. Consumer decisions matter to producers too, but low barriers are what encourage more businesses and choices to enter the market.

AI-written and checked against the verified answer.

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