The Basic Distinction Between Perfect Competition and Monopolistic Competition Is

The basic distinction between perfect competition and monopolistic competition is that

A) in perfect competition there are many sellers; in monopolistic competition, there are few.
B) entry into a market is easy for a new seller in perfect competition, while it is difficult in monopolistic competition.
C) firms in perfect competition must advertise to sell their products, but since they have a monopoly, monopolistically competitive firms do not.
D) perfectly competitive firms produce an identical product; monopolistically competitive firms produce similar products.
E) a perfectly competitive firm produces with an excess capacity in the long run; a monopolistically competitive firm does not.

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