Correct option: C.Many close substitutes exist in monopolistic competition
(c) Many close substitutes exist in monopolistic competition
Explanation: In monopoly, there is a single seller and no close substitutes are available for the product. So the customer cannot shift to any other product(as there are no substitutes) if the monopolist increases the price of the product. In such a case the demand is less elastic or inelastic. Whereas in monopolistic competition, there are large number of sellers and substitutes are available, so the customer will shift to substitute product if there is a increase in price. As such in this situation the demand is more elastic.