Which of the following is a feature of monopolistic competition?
A. Product differentiation
B. Homogeneous product
C. Single seller
D. Perfect knowledge and free entry without costs
Answer: Option A
Solution (By JKSSB Mock Tests)
Monopolistic competition is characterised by product differentiation, a large number of firms, free entry and exit, and some degree of price control by firms.
Explanation:
Milton Friedman and Edmund Phelps developed the concept of the natural rate of unemployment, which is the unemployment rate consistent with stable inflation in the long run.
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