The wedding dress industry is monopolistically competitive.As a result:

A) thousands of dress suppliers all sell identical products.
B) dresses tend to be differentiated among the many sellers serving this market.
C) it has freedom of entry but not exit.
D) prices tend to be lower than if the dress industry approximated perfect competition.

Monopolistically Competitive

Describes a market structure where many companies sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Differentiated

Products or services that are distinct from others based on quality, features, or branding to create a perceived difference.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, free entry and exit, and perfect information, leading to an efficient allocation of resources.