The correct answer is A. Higher than in perfect competition
Explanation:
Monopolistic competition occurs as businesses offer slightly different products or services. This causes the products or services cannot be replaced by others, and therefore, each firm or business can establish prices. Moreover, in monopolistic competition prices are higher as firms take advantage of the features that make their products different. This does not occur in perfect competition in which different companies offer the same products. Thus, a major characteristic of monopolistic competition is that prices will be higher than in perfect competition.
