Perfect competition differs from monopolistic competition primarily because

A) in perfect competition, firms have homogeneous products.
B) in perfect competition, price is a decision variable.
C) in monopolistic competition, entry into the industry is limited.
D) in monopolistic competition, there are many firms in the industry.

Homogeneous Products

Refers to goods that are identical in quality and features, making them perfect substitutes for each other in the eyes of consumers.

Decision Variable

A variable that represents choices available to the decision-maker in problem-solving or optimization scenarios.

Barriers

Obstacles that prevent entry into a market or impede growth and can be economic, regulatory, technological, or cultural.