Monopolistic competition is a market structure in which there are many firms selling differentiated products that are close substitutes for each other. In this type of market, each firm has some degree of market power, but there is also a relatively low barrier to entry, meaning that new firms can easily enter the market. This results in a competitive market in which firms must differentiate their products and offer unique features or benefits to attract customers. Examples of industries that exhibit monopolistic competition include restaurants, clothing stores, and hair salons.