Product differentiation under monopolistic competition means that each firm:

A) charges a slightly different price.
B) has a pure monopoly.
C) maximizes profit where MC = P.
D) faces a horizontal demand curve.

MC = P

A condition in economics where marginal cost equals price, often indicating the point of profit maximization for firms.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for significant influence over pricing.

Product Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.