A monopolistic competitor is like a monopolist in that:

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A monopolistic competitor, like a monopolist, faces a downward-sloping demand curve. This is because it has some degree of market power to influence the price of its product. However, unlike a monopolist, a monopolistic competitor does not face significant barriers to entry and can earn a positive economic profit in the short run. In the long run, competition from other firms will drive down its profits and it will earn zero economic profit. Additionally, the marginal revenue curve lies below the demand curve in the case of a monopolist, while it lies above the demand curve for a monopolistic competitor. Finally, a monopolistic competitor may sell in the inelastic portion of its demand curve, but it is not necessary for it to do so.

A Monopolistic Competitor Is Like a Monopolist in That