The main features of monopolistic competition are:
I. large number of firms
II. product differentiation
III. free entry and exit
IV. homogeneous product

I and IV are correct

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II, III and IV are correct

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I, II and III are correct

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All are correct

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Solution

The correct option is C I, II and III are correct
Monopolistic competition is a competition where there are large number of sellers selling closely related but not homogeneous products. There are also no barriers to entry in this competition. Hence, the main features of monopolistic competition are:
Large number of firms.
Product differentiation.
Free entry and exit.

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The main features of monopolistic competition are:I. large number of firmsII. product differentiationIII. free entry and exitIV. homogeneous product

The main features of monopolistic competition are:
I. large number of firms
II. product differentiation
III. free entry and exit
IV. homogeneous product