Monopolistic competition is a market structure in which there are many firms selling products that are similar but not identical. For example in the market for blue jeans, there aremany producers such as Mavi Jeans, Levi’s, Guess, GAP, LC Waikiki. These are all brand names. Jeans sold by these producers are differentiated according to style, quality, design, etc. Hence consumers do not perceive these brand name jeans as identical. The correct answer is C.