Monopolistic competition is an industry market structure with

A) a single firm in which the entry of new firms is blocked.
B) a small number of firms each large enough to impact the market price of its output.
C) many firms each able to differentiate their product.
D) many firms each too small to impact the market price of its output.

Monopolistic Competition

A market structure characterized by many firms offering similar but not identical products, resulting in some degree of market power for each firm.

Differentiate Their Product

The strategy companies use to make their product or service stand out from competitors.

Industry Market Structure

Refers to the organization and characteristics of a particular market, including the number and size of firms, and the level of competition.