Monopolistic competition is a market structure where many firms sell similar but not identical products. Each company has some control over its prices because their products are differentiated, meaning they offer unique features or branding. For example, restaurants may serve similar types of food but have different atmospheres, menus, or service styles, allowing them to attract different customers. In this type of competition, firms compete on factors other than price, such as quality, advertising, and customer service. While there are many sellers, the presence of product differentiation means that no single firm can dominate the market completely, leading to a balance between competition and monopoly.