One difference between monopolistic competition and pure competition is that

A) products may be homogeneous in monopolistic competition.
B) there is some control over price in monopolistic competition.
C) monopolistic competition has significant barriers to entry.
D) firms differentiate their products in pure competition.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing them to act as monopolies for their unique products while still facing competition.

Homogeneous

Describes products, goods, or services that are identical in features and quality, making them indistinguishable from one another to consumers.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and very easy entry and exit.