The Movie You've Got Mail Features a Successful Small Bookstore

The movie You've Got Mail features a successful small bookstore competing with a new book superstore around the block. The big superstore offers deep discounts, while the small independent bookstore has better service and more knowledgeable staff. The movie best illustrates which of the following?

A) Small producers can't compete based on costs.
B) Large producers offer differentiated products and compete most effectively through product differentiation.
C) Small producers offer differentiated products and compete most effectively through product differentiation.
D) The Meg Ryan character's bookstore best illustrates a perfectly competitive firm.
E) The Tom Hanks character's bookstore best illustrates a monopoly firm.