A firm's ability to charge a higher-than-market price in a monopolistic competition competitive environment is directly related to the size of its differential advantage.

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In a monopolistic competition, firms can differentiate their products or services from those of competitors, and a larger differential advantage (unique features, quality, brand image, etc.) can allow a firm to charge a premium price because its offerings are perceived as superior or unique compared to those of competitors.

A Firm's Ability to Charge a Higher-Than-Market Price in a Monopolistic