Which statement is true?

A) There are many firms in a monopolistically competitive industry.
B) Monopolistic competitors produce an identical product.
C) In order for product differentiation to take place,there must be clear physical differences among the products sold.
D) None of these statements are true.

Monopolistically Competitive Industry

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition based on factors other than price.

Product Differentiation

The strategy businesses use to distinguish their products from those of competitors, through variations in quality, features, design, or branding.

Physical Differences

Variations in the tangible characteristics or attributes of a product, which can affect consumer preference and value perception.