Monopolistic competition is a market structure developed by Edward Chamberlin that combines aspects of monopoly and perfect competition. It involves many sellers offering differentiated products, free entry and exit of businesses, and firms competing through non-price factors like product quality, marketing, and brand image rather than solely on price. This market structure promotes innovation through new products and production processes but can also result in wasteful activities from firms seeking to differentiate their products.

2. 
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Developed by Edward H Chamberlin
It is a blend of monopoly & perfect
competition
It is a market situation in which there are
many sellers of a particular product,but the
product is differentiated

3. 
Large number of sellers
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Product differentiation
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Free entry & exit of firms
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Non price competition
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Price policy

4. 
Selling cost
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Less mobility
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Imperfect knowledge

5. 
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No significant barriers to entry
Differentiation creates diversity, choice and
utility
Dynamically efficient and innovative in terms
of new production process and products

6. 
Some doesn't create utility generate waste
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Profit maximization