BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In monopolistic competition, we still have many sellers (as we had under perfect competition). Now, however, they don’t sell identical products. Instead, they sell differentiated products-products that differ somewhat, or are perceived to differ, even though they serve a similar purpose.

Detailed explanation-2: -Monopolistic competition involves many buyers, many sellers, and easy exit and entry, with slightly differentiated products. The sellers in these markets sell products that are closely related, but not identical. They have features that differentiate them from the competition.

Detailed explanation-3: -Monopolistic competition is a competition where there are large number of sellers who sell related products which are no close substitutes of each other. Also there is no barriers of entry. Hence, the statement is true.