Monopolistic competition in a market is characterized by:

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Monopolistic competition is characterized by many firms competing in a market, with each firm producing slightly differentiated products. This leads to downward-sloping demand curves as consumers have a range of choices from which to choose. In the long run, firms in monopolistic competition will earn zero economic profit, as new firms can easily enter the market and compete away any excess profits. Option A correctly identifies all of these characteristics. Option B describes an oligopoly, while option C describes perfect competition. Option D describes a monopoly, not monopolistic competition.

Monopolistic Competition in a Market Is Characterized By