How do firms in monopolistic competition compete? firms in monopolistic competition compete in three areas, which are a. quality, price, and marketing b. number of retail outlets, price, and marketing c. price, celebrity endorsements, and sporting event sponsorships d. quality, celebrity endorsements, and sporting event sponsorships

The correct answer is option A.

Explanation:

Monopolistic competition refers to the market structure where there is a large number of buyers and sellers in the market. These sellers sell heterogeneous or differentiated products in the market.  

The firms are price makers and face a downward-sloping demand curve. There is a high degree of competition in the market due to product differentiation. That is why there is little difficulty in an entry into the market.  

Because of product differentiation, the firms advertise their products in order to gain market share. So the existing firms in the market compete in quality, price, and marketing.

answer; i believe that the correct answer is ; (a) customer demand for the

the third answer is correct.