Which of the following is not a basic characteristic of monopolistic competition?

A) the use of trademarks and brand names C) product differentiation

B) recognized mutual interdependence D) a relatively large number of sellers

Answer: recognized mutual interdependence

Explanation: The characteristic of mutual interdependence can be seen in oligopoly market structure and not monopolistic competition. In a monopolistic competition market structure, the product differentiation is done by advertisement and branding.

Hence, from the above we can conclude that option B is correct.

Here the correct option is B) mutual interdependence.

Explanation:

Monopolistic competition is that form of market where there are large number of buyers and sellers, barriers to the entry and exit are very weak or non existent. Here the most important feature is of product differentiation, where every product has some unique feature, which means in this form of market products are heterogeneous not homogeneous and since the products are heterogeneous, manufacturers uses trademarks and brand names to protect their product, so that their competitors might not copy them. And there is no mutual interdependence among sellers here, because products here are heterogeneous and there are barriers to entry.