Final answer:
Monopolistic competition is a market structure characterized by a large number of firms, heterogeneous products, and low barriers to entry and exit. Firms in this market can differentiate their products to appeal to customers.
Step-by-step explanation:
Monopolistic competition is characterized by a large number of firms, heterogeneous products, and a low cost of entry and exit. In this market structure, many producers supply similar but varied products with few barriers to market entry.
Unlike perfect competition, where firms sell identical products, monopolistic competition allows firms to differentiate their products in order to attract customers.