Who sets the price in a monopolistic competition?

Producers and consumers

Consumers only

Government

Producers only

Producers

Explanation:

Monopolistic competition is a form of market competition where different producers produce goods that are largely different from each other and can not even been used as a perfect substitute for one another.

This gives each producer the opportunity to decide its prices and output. Prices are always set higher than the marginal costs and the consumer surplus are less compared to a perfectly competitive market, making monopoly competition an imperfect market.