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Questions › CUET-PG › CUET-PG 2026 › Q53
4 marks, −1Microeconomics › Monopolistic competition and oligopoly › Monopolistic competitionModerateabout 1 min

CUET-PG 2026 Question 53: Monopolistic competition and oligopoly

Consider the statements about monopolistic competition.

A. Firms faces downward sloping demand curve.

B. Excess capacity is a long run property.

C. Firm is price taker.

D. Product differentiations is essential in this market.

E. Selling costs are significant.

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Answer and worked solution

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Monopolistic competition and oligopoly has come up 104 times in 7 exams since 2004.

What this question tests

This question is on Monopolistic competition, part of Monopolistic competition and oligopoly in Microeconomics.

Many firms selling differentiated products: short-run and long-run equilibrium and excess capacity.

TestStop has 16 past-paper questions on this subtopic.

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Question from the CUET-PG 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.