Which of the following is the most accurate characteristic of a Monopolistic Competition market structure in comparison to Perfect Competition?
1
Firms have significant market power due to differentiated products.
2
There are no barriers to entry, leading to a few firms dominating the market.
3
Firms sell identical products with no ability to influence prices.
4
There are few firms, and entry barriers are high, leading to limited competition.
5
Firms in monopolistic competition sell undifferentiated products with identical prices.