alleryStart learning →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_
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