Which of the following is a reason for the fast-food outlet McDonald's to be considered a monopolistic competitor?

A) McDonald's produces an identical product.
B) McDonald's competes with almost a quarter million other fast-food outlets.
C) McDonald's demand curve is a horizontal line.
D) None of these statements support a monopolistic competitor.

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical, allowing for competition on factors other than price.

McDonald's

A global fast-food restaurant chain known for its burgers, fries, and breakfast menus.

Fast-food Outlets

Quick service restaurants that serve food rapidly and are typically part of a large chain or franchise.