Which of the following best describes product differentiation in a monopolistic competition market structure?

Product differentiation in a monopolistic competition market structure means that companies try to make their products stand out from others. This is important because, unlike in perfect competition where products are identical, businesses in monopolistic competition sell similar but not identical items. For example, think about different brands of toothpaste; each brand might have unique flavors, packaging, or added benefits like whitening. By emphasizing these differences, companies can attract customers who might prefer one brand over another. This strategy allows businesses to have some control over their prices since their products are not seen as interchangeable.