The feature that distinguishes monopolistic competition from perfect competition is that monopolistically competitive firms are

A) large relative to the market.
B) price takers.
C) able to block the entry of other firms.
D) able to differentiate their products.

Learning Objectives

• Perceive the crucial role played by product differentiation in affording corporations in monopolistically competitive landscapes the capability of influencing pricing to some extent.
• Analyze the consequence of a business's size when juxtaposed with the market in scenarios of monopolistic competition, in contrast to varied market architectures.