Monopolistic competition is an industry characterized by:

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Monopolistic competition is an industry in which there are many firms selling products that are close substitutes but not identical. This means that consumers have choices and can switch easily between products, creating competition among firms. A horizontal demand curve is not a characteristic of monopolistic competition, as firms have some degree of market power to set their own prices. There may be a large number of firms in a monopolistically competitive industry and there are typically low barriers to entry and exit.

Monopolistic Competition Is an Industry Characterized By