Which of the following is a characteristic of monopolistic competition?

Question

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Monopolistic competition is characterized by many firms selling similar but not identical products. This means that there are enough competitors to prevent a single firm from having significant control over the market, but each firm can still differentiate its product in some way to attract customers. A is incorrect because monopolistic competition typically involves many firms rather than a few. B is incorrect because the products in this type of market are not homogeneous, but rather differentiated.

Which of the Following Is a Characteristic of Monopolistic Competition