Explanation:

Option 3 is not correct, i.e. Product in the market is homogeneous.

• Monopolistic competition occurs when an industry has many firms offering products that are similar but not identical.

• Unlike a monopoly, these firms have little power to set curtail supply or raise prices to increase profits.

• Take, for example, the beauty soap industry in India, we have many brands such as Lux, Patanjali and many more.

• While Lux market itself as Beauty soap, the Patanjali markets itself as the ayurvedic product.

• Firms in monopolistic competition typically try to differentiate their product in order to achieve in order to capture above-market returns.

Hence products in monopolistic competition are not homogeneous.