Answer:
Monopolistic competition is a form of market in which large number of sellers sell different kind of product.
There is a difference in their Trade. Mark, Brand Name, packaging, etc. the commodities produced by firms are close substitute of one another.
\[\begin{align} & \text{Free Entry and Exit of firms} \\ & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\Downarrow \\ \end{align}\]
The new firms to enter into a market and the existing firms can leave the market as per their own willingness but sometimes, they face a monopolist restriction i.e., Cartel.
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