How is a monopolistically competitive industry like perfect competitio

How is a monopolistically competitive industry like perfect competition? How is it like monopoly?

What will be an ideal response?

ANSWER

Monopolistic competition is like perfect competition in that there are many firms and no barriers to entry (and thus long-run economic profits will be zero). It is like monopoly in that firms sell products that are not perfect substitutes for each other, and thus firms have some market power, and prices will be above marginal cost.