Monopolistic competition is characterized by a large number of firms and low entry barriers.
Monopolistic competition occurs where competitive firms produces or manufactures products or services that are similar and close substitutes to one another.
The characteristics of the monopolistically competitive market includes:
1. Presence of many sellers in the market
2. Easy entrance and exit of consumers in the market
3. Differentiated products in the market.
Hence, monopolistic competition is characterized by a large number of firms and low entry barriers.
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