Answer: Option B
Answer: (b)
Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another as goods but not perfect substitutes (such as from branding, quality, or location).
In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.
There are six characteristics of monopolistic competition (MC):
Product differentiation;
many firms;
Free entry and exit in the long run;
Independent decision making;
market power; and
Buyers and Sellers do not have perfect information.
Toothpaste, toilet papers, computer software and operating systems are examples of differentiated products.