Which of the following is a characteristic of an industry that is classified as a monopolistic competition?

Question

The product sold cannot be replicated.

There are no profits in a monopolistic competition.

There are no substantial barriers to entry.

One firm sells a specific product.

Answer 1

A characteristic of an industry that is classified as monopolistic competition is:

There are no substantial barriers to entry.

In monopolistic competition, many firms compete by selling similar but not identical products, and there are relatively low barriers to entry for new firms. This allows for greater competition and variety in the market. The other options do not accurately describe monopolistic competition.