The monopolistic competitor

A) produces a good or service that has no close substitutes.
B) is usually a small firm.
C) has very little competition.
D) is protected by substantial barriers to entry.

Monopolistic Competitor

A firm in a market structure where many companies sell products or services that are similar but not identical, allowing for significant differentiation and competition.

Barriers to Entry

Factors that prevent or hinder potential competitors from entering a market or industry sector.

Close Substitutes

Products or services that can serve almost the same purpose or fulfill the same need, allowing consumers to switch easily between them.