What is a distinguishing feature of businesses in monopolistic competition?

In a monopolistic competition, a key characteristic is the differentiation of products among many competitors. This means that while there are numerous firms in the market, each offers products or services that are distinct from one another in some way. This differentiation can occur through variations in quality, features, branding, or customer service. As a result, although many businesses are competing in a similar market, they each carve out a niche based on these unique characteristics.

Such differentiation allows businesses to develop some degree of market power, enabling them to charge prices that may differ from those of their competitors. This is contrary to the first choice, which suggests uniform pricing that does not occur in monopolistic competition because firms' ability to differentiate their offerings leads to varied pricing strategies.

The third choice refers to a monopoly, where a single firm controls the entire market, which is not applicable in monopolistic competition where many firms exist. The fourth option implies government intervention in pricing, which typically pertains to regulated industries and does not reflect the nature of monopolistic competition where prices are determined by market forces and the uniqueness of the products. Hence, the correct answer highlights the essence of monopolistic competition through the specific differentiating factors of products.