Under monopolistic competition,the market consists of few buyers and sellers who trade over a range of prices rather than a single market price.

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Under monopolistic competition, there are many buyers and sellers who compete on the basis of product differentiation, but each seller faces a downward-sloping demand curve and must choose a price-output combination that maximizes their profit. This leads to a single equilibrium price for each seller's unique product.

Under Monopolistic Competition,the Market Consists of Few Buyers and Sellers