The following two characteristics define a particular type of market: A. Close substitute products are sold by firms; B. Free entry and exit of firms. Select the correct option from below:
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4 marks, −1MicroeconomicsMonopolistic competition and oligopolyMonopolistic competitionEasyabout 1 min
CUET-PG 2026 Question 8: Monopolistic competition and oligopoly
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.
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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.