In monopolistic competition
A)firms practice product differentiation.
B)the goods produced by each firm are identical.
C)firms do not have any control over the price of their products.
D)there are barriers to entry.
E)a small number of firms compete.

Question

Quizplus · Accepted Answer

In monopolistic competition, firms practice product differentiation, meaning they offer goods or services with different features, quality, or branding to distinguish themselves from their competitors. This allows firms to charge slightly different prices and have some control over their own pricing. The other options listed (B, C, D, E) are not characteristic of monopolistic competition.

In Monopolistic Competition