A market situation in which a large number of firms produce similar but not identical products is called

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Monopolistic competition is a market structure where firms produce differentiated products that are close substitutes for each other. This means that buyers have some degree of freedom to buy from different firms based on their preferences, but firms still have some control over the price they charge. In contrast, in a perfectly competitive market, products are identical, while in a pure monopoly, there is only one seller of a product. Oligopolistic behavior refers to the behavior of a few large firms that dominate a market, which is different from monopolistic competition.

A Market Situation in Which a Large Number of Firms