[This is part of the series: The Complete Guide To Economics 101.]
What is monopolistic competition?
Monopolistic Competition is a situation where many sellers produce and sell similar products. Their goods are similar, but are differentiated by brand, quality, price, and perception.
The best example I can think of is toothpaste.
There are many different toothpaste brands, a very similar product, but there exist differences between brands in the eyes of the customer, i.e. good marketing.