By differentiating their products and promoting brand name loyalty,monopolistically competitive firms can raise prices without losing all their customers.

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This statement is true. Monopolistically competitive firms differentiate their products in order to create brand loyalty among their customers. Due to this brand loyalty, they can raise prices without losing all their customers. However, if the price increase is too high, some customers may switch to a lower-priced substitute product from a competitor.

By Differentiating Their Products and Promoting Brand Name Loyalty,monopolistically Competitive