Monopolistic competition occurs when there are many firms competing for customers in a given market but their products are differentiated.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing for competition based on quality, price, and brand.

Differentiated

Pertains to a marketing strategy where a company offers unique features, benefits, or product variations to stand out from competitors.

Competing

Involves entities or individuals striving against each other to achieve a goal that cannot be shared.