Monopolistic competition is characterized by

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Monopolistic competition is characterized by relative ease of entry into the market, meaning that new firms can easily enter the market and compete with existing firms. This is because products in monopolistic competition are differentiated in some way, such as through branding, quality, or design, allowing for firms to differentiate themselves from competitors. Monopolistic competition does not have a standard, undifferentiated product, and firms do not generally experience persistent long-run economic profits. Additionally, firms in monopolistic competition face a downward sloping, rather than horizontal, demand curve due to the differentiation of their products.

Monopolistic Competition Is Characterized by