Monopolistic competition describes an industry characterized by:

A) a product with no close substitutes.
B) many firms,each with some market power.
C) a small number of firms.
D) barriers to entry and exit.

Barriers To Entry

Factors that make it difficult for new firms to enter a market, such as high startup costs, complex regulations, or entrenched competitors.

Monopolistic Competition

A market structure characterized by many firms selling differentiated products, allowing for some degree of market power.

Close Substitutes

Close substitutes are products or services that can serve as nearly identical alternatives for consumers, making them likely to switch if the price or quality of one changes.