A monopolistically competitive firm can raise its price somewhat without fear of great change in unit sales because of

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In a monopolistically competitive market, firms often differentiate their products through branding, advertising, and other means. This creates brand loyalty among consumers, which allows firms to raise prices without fear of losing too many customers to competitors. Therefore, choice A (Brand loyalty) is the best choice. Economies of scale (choice B) do not apply to monopolistically competitive firms, as they are too small to achieve significant cost savings from large-scale production. Inelastic demand (choice C) may apply, but it is not unique to monopolistically competitive firms and does not explain why they can raise prices without losing sales.

A Monopolistically Competitive Firm Can Raise Its Price Somewhat Without