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    Question

    A market situation when firms sell similar but not

    identical products is termed as?
    A perfect competition Correct Answer Incorrect Answer
    B imperfect competition Correct Answer Incorrect Answer
    C monopolistic competition Correct Answer Incorrect Answer
    D oligopoly Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes. In other words, large sellers selling the products that are similar, but not identical and compete with each other on other factors besides price.

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