In monopolistic competition

The correct answer is: B. There are many firms selling similar goods.

In monopolistic competition, there are many firms selling similar but not identical goods. This means that each firm has some control over its price, but it also faces competition from other firms selling similar products. As a result, firms in monopolistic competition will typically earn a profit that is less than the profit that a firm would earn in a monopoly market.

Here is a brief explanation of each option:

• Option A: There are some firms selling differentiated product. This is not correct, because in monopolistic competition, there are many firms selling similar goods.
• Option B: There are many firms selling similar goods. This is the correct answer, as explained above.
• Option C: There are some firms selling same product. This is not correct, because in monopolistic competition, firms sell similar but not identical goods.
• Option D: There are many firms selling differentiated product. This is not correct, because in monopolistic competition, firms sell similar but not identical goods.