Question

What are the "monopolistic" and the "competitive" elements of monopolistic competition?

A) Monopolistic competition gets its competitive aspect from having many sellers. Product differentiation allows for monopolistic niches within markets and gives it its monopolistic aspect.

B) Monopolistic competition gets its competitive aspect from the fact that firms' products are identical. Cartels allow for monopolistic niches within markets and give it its monopolistic aspect.

C) Monopolistic competition gets its competitive aspect from having many sellers. Cartels allow for monopolistic niches within markets and give it its monopolistic aspect.

D) Monopolistic competition gets its competitive aspect from the fact that firms' products are identical. Product differentiation allows for monopolistic niches within markets and gives it its monopolistic aspect.