Read the following statements - Assertion (A) and Reasoning (R): Assertion: Monopolistic competition involves aggressive advertising by firms. Reasoning: It consists of large number of buyers and sellers.

Both Assertion (A) and Reasoning (R) are true and Reasoning (R) is the correct explanation of Assertion (A). Both Assertion (A) and Reasoning (R) are true and Reasoning (R) is not the correct explanation of Assertion (A). Assertion (A) is true but Reasoning (R) is false. Assertion (A) is false but Reasoning (R) is true.

Both Assertion (A) and Reasoning (R) are true and Reasoning (R) is not the correct explanation of Assertion (A).

There is fierce competition and hence aggressive advertising by the firms because firms deal in products which are close substitute of each other. Large number of sellers does not always imply fierce competition. Take the case of perfect competition. That also consists of large number of sellers but there is advertising or fierce =competition in that form of market.