Final answer:
Monopolistic competition is a market structure where similar but not identical products are available for sale. Multiple firms compete with each other, but each firm has some control over pricing and product differentiation. The correct answer is option 4) Monopolistic competition.
Step-by-step explanation:
Monopolistic competition refers to a market where many firms sell differentiated products. In this type of market, similar but not identical products are available for sale. It falls between the extremes of perfect competition and monopoly.
An example of monopolistic competition can be seen in the Mall of America, where there are multiple stores selling women's clothing, each offering slightly different products. The competing firms in a monopolistically competitive market have some control over their pricing and can differentiate their products through branding, advertising, or location.
Monopolistic competition is characterized by a large number of competing firms, differentiated products, and a certain degree of market power due to product differentiation. This market structure allows for product diversity and competition while still allowing individual firms to have some control over their pricing.