A feature of monopolistic competition that makes it different
from monopoly is the number of firms in the industry.
A monopoly is a market structure characterized by a single firm
selling unique goods and services. The monopoly firm sets very high
prices for its goods and services which creates a strong barrier to
entry for other firms.
While a monopolistic competitive market is characterized by
large number of firms selling differentiated products and free
entry and exit into the market due to the absence of barriers to
entry and exit.