In monopolistic competition, firms can have some market power

A) by virtue of size alone.
B) by producing differentiated products.
C) because of barriers to entry into the industry.
D) because of barriers to exit from the industry.

Market Power

An imperfectly competitive firm’s ability to raise price without losing all of the quantity demanded for its product.

Differentiated Products

These are products that are distinct from one another on the basis of branding, quality, or other characteristics that are valued by consumers.

Barriers

Obstacles that prevent entry into a market or hinder competition within a market.