Product differentiation in monopolistically competitive markets ensures that, for profit-maximizing firms,

A) marginal revenue will equal average total cost.
B) price will exceed marginal cost.
C) marginal cost will exceed average total cost.
D) average total cost will be rising.

Product Differentiation

Making a product or service stand out to a particular target market by distinguishing it from competitors.

Profit-Maximizing Firms

Companies that operate with the goal of making the highest possible profit from their activities.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.