单选题

A firm in the market environment characterized by monopolistic competition will most likely:

A、 continue to experience economic profit in the long run.
B、 have a well-defined supply function reflecting its marginal and average costs.
C、 have many competitors, each of which follows its own product differentiation strategy.

【正确答案】 C

【答案解析】

C is correct. As the name implies, monopolistic competition is a hybrid market. The most distinctive factor in monopolistic competition is product differentiation. Although the market is made up of many firms that compose the product group, each producer attempts to distinguish its product from that of the others, and product differentiation is accomplished in a variety of ways.