Answer:
True.
A monopolistically competitive industry is characterized by many firms that sell differentiated products. This means that each firm produces a slightly different product, which allows them to differentiate themselves from their competitors. This differentiation can be based on things like branding, packaging, or the specific features of the product. As a result, consumers have a variety of choices, but each firm still has some degree of market power. In this market structure, firms have the freedom to set their own prices, but they are also affected by the prices set by their rivals.