Which statement accurately describes a characteristic of monopolistic competition?

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Companies encounter a demand curve that is perfectly elastic.Every product offered is identical across firms.Businesses earn only normal profits over the long term.Entry barriers exist that restrict new competitors from entering the market.

Explanation

In monopolistic competition, there are no significant barriers to entry, allowing new firms to enter freely. Therefore, option D is incorrect as it states that barriers prevent entry, which is not true in this market structure.