Monopolistic competition is a market structure characterized by a large number of firms competing in the market, where each firm sells a slightly differentiated product. In this structure, firms have some control over their pricing due to product differentiation, but the competition keeps prices relatively stable.

Six main features of monopolistic competition include:

1. Many Sellers: A large number of firms operate in the market, ensuring that no single firm can dominate the market price.
2. Product Differentiation: Each firm offers a product that is slightly different from its competitors, leading to consumer preference.
3. Free Entry and Exit: New firms can easily enter the market when they see potential profits, and existing firms can exit without major barriers.
4. Independent Decision-Making: Each firm makes its pricing and production decisions independently of the others.
5. Some Control Over Prices: Due to product differentiation, firms can set prices above marginal cost, although they face competition.
6. Non-Price Competition: Firms often engage in advertising and marketing to enhance brand loyalty and differentiate their products from others in the market.