UPSC 2014 CDS II GK Paper

A market in which there are a large number of sellers of aparticular product, but each seller sells somewhat differentiated but close products is termed as monopolistic competition. It is a type of imperfect competition such that many producers sell productsthat are differentiated from one another (e.g., by branding or quality) and, hence, are not perfect substitutes. In other words, a large number of sellers sell the products that are similar, but not identicaland compete with each other on other factors besides price.