Which of the Following Statements Accurately Brings Out the Difference

question 90

Multiple Choice

Which of the following statements accurately brings out the difference between monopolistic competition and an oligopoly?

• A) Sellers in an oligopoly provide highly differentiated products; in monopolistic competition, the products sold are undifferentiated or standardized.
• B) In an oligopoly, the number of buyers is large; in monopolistic competition, the number of buyers is limited to three or four.
• C) Firms in an oligopoly have no pricing power; firms in a monopolistically competitive industry have the ability to raise prices.
• D) In monopolistic competition, many firms compete against each other; in an oligopoly, there are few large firms competing against each other.