The number of firms in a monopolistically competitive market means that

A. each firm has a relatively small share of the total market since there are many firms in the industry.
B. the firms will be likely to collude since there are only a few firms in the industry.
C. all firms will have substantial monopoly power since there are so few firms in the industry.
D. firms will have a hard time earning non-negative profits since there are many firms in the industry.


Answer: A

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