Question

In this kind of market, firms produce goods that are very close substitutes.
Group of answer choices

Perfect Competition

Oligopoly

Pure Monopoly

Monopolistic Competition

Answer 1

In a market where firms produce goods that are very close substitutes, the correct answer is **Monopolistic Competition**.

In monopolistic competition, many firms sell products that are similar but not identical, leading to competition based on factors like branding, quality, and price.