In monopolistic competition,each firm:

A) is a price taker.
B) has some ability to set the price of its differentiated good.
C) will set price equal to marginal cost.
D) has marginal revenue that is greater than price.

Price Taker

A market participant that accepts prevailing prices as given, having no influence to alter the price of a good or service.

Marginal Revenue

The additional income from selling one more unit of a good; generally equal to the price of the good for perfectly competitive firms.

Differentiated Good

A Differentiated Good is a product or service that is distinct in some way from its competitors, whether through quality, features, branding, or customer service, allowing it to stand out in the marketplace.