monopolistic competition

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Market situation midway between the extremes of perfect competition and monopoly, and displaying features of the both. In such situations firms are free to enter a highly competitive market where several competitors offer products that are close (but not perfect) substitutes and, therefore, prices are at the level of average costs (a feature of perfect competition). Also, some consumers have a preference for one product over another that is strong enough to make them keep buying it even when its price increases, thus giving its producer a small amount of market power (a feature of monopoly). Monopolistic situation is a common situation in all free markets.

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The essence of a dynamically active market is the ability to produce a product that people may love above all other products available ; monopolistic competition.
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Sometimes when you can't get a perfect competition or a monopoly the best you can settle for is being in the middle in monopolistic competition.
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A good goal to have for your business is to run at a monopolistic competition so that you have the best of both strategies.
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