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Answer (A) is correct . Monopolistic competition is characterized by a large number of firms offering differentiated products. Entry into the market is relatively easy, firms have some price control, and substantial nonprice competition exists, such as advertising.

Answer (B) is incorrect because Monopolistic competition is characterized by a relatively large group of sellers.
Answer (C) is incorrect because The market is not monopolistic. There are many sellers.
Answer (D) is incorrect because Products are not homogeneous in monopolistic competition; although products may appear to be similar, they have differences in service, quality, or other attributes.