One way in which monopolistic competition differs from oligopoly is that

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In an oligopoly market, there are only a few sellers. In contrast, a monopolistically competitive market has many small sellers who are not large enough to manipulate prices or control the market. The other options are incorrect: A is incorrect because barriers to entry do exist in some cases of oligopoly; C is incorrect because not all firms in an oligopoly necessarily earn zero economic profits; and D is incorrect since strategic interactions between firms are a defining characteristic of oligopoly markets.

One Way in Which Monopolistic Competition Differs from Oligopoly Is