单选题 Which of the following regarding monopolistic competition is TRUE?

A、 Zero barriers to entry and exit exist.
B、 The demand curve for an individual firm is a straight horizontal line.
C、 Each firm produces a differentiated product.

【正确答案】 C

【答案解析】Other characteristics of monopolistic competition (also known as competitive price searcher markets) are: a large number of independent sellers, low barriers to entry, and an elastic downward sloping demand curve.