Home › AP Microeconomics › Economics › Monopolistic Competition and Oligopoly › Products that are distinctive from their rivals …
Products that are distinctive from their rivals in some way are called:
APublic sector goods
BDifferentiated goods
CFully identical goods
DPurely inferior goods
Answer & Solution
Correct answer: B. Differentiated goods
1. Monopolistic competition rests on products not being identical.
2. Products can be distinguished by physical features, location, intangible qualities or perception.
3. We call products that are distinctive in one of these ways differentiated products.
4. Perfect competition instead assumes every seller's product is identical.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 10 'Monopolistic Competition and Oligopoly', sections 10.1-10.2_
Related questions
Compared with a cartel, the Boeing and Airbus duopoly is held together by:The prisoner's dilemma applies to oligopoly because firms face a choice between:Monopolistic competition and oligopoly are grouped together because both are:The kinked demand curve makes an oligopolist reluctant to raise price because rivals will:A cartel is unstable because each member firm has an incentive to:Products can be differentiated by physical features, location, intangible qualities and:A cartel agreement aims to produce which level of output?The barrier to entry behind the Boeing and Airbus oligopoly comes from economies of scale