🔑Monopolistic competition involves many firms producing similar but differentiated products.
🔒Firms in monopolistic competition use product differentiation and advertising to emphasize unique qualities.
💰The barriers to entry are low in monopolistic competition, allowing new firms to easily enter the market.
🏷️Monopolistically competitive firms have some pricing power, allowing them to raise prices without losing all customers.
⚖️Monopolistic competition is less efficient than perfect competition due to excess capacity and underutilization of resources.