Economic analysis of a monopolistically competitive industry is more complicated than that of pure competition because:

A) of product differentiation and consequent product promotion activities.
B) monopolistically competitive firms cannot realize an economic profit in the long run.
C) the number of firms in the industry is larger.
D) monopolistically competitive producers use strategic pricing strategies to combat rivals.

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a specific target market.

Economic Analysis

The process of examining statistics, market trends, and financial principles to make a comprehension of the economic landscape for decision-making purposes.

Product Promotion

Product Promotion involves various techniques and strategies used by businesses to inform, persuade, and remind consumers about their products and services.