Choice "D" is correct. The characteristics of monopolistic competition include:
Numerous firms with differentiated products.
Ease of entry - few barriers.
Firms exact some influence over price and market.
Non-price competition is frequent and critical.
Choice "a" is incorrect. Monopolistic competition has a few obstacles. A market with no obstacles is in perfect competition.
Choice "b" is incorrect. Significant obstacles are characteristic of oligopoly.
Choice "c" is incorrect. Significant capital requirements represent a significant barrier to entry, which is a characteristic of an oligopoly.
