What is monopolistic competition? Can a seller in such a market influence the price? Explain.
It is a form of market in which there are many sellers of the product, but the product of each seller is somewhat different from that of the other, e.g. firms producing different brands of toothpastes, viz Colgate, closeup, pepsodent, etc.
In such a market, a seller has a partial control over price due to product differentiation. However, full control over price is not possible because of the fact that there are a large number of close substitutes available in the market.