It can be mentioned that the given statement can be justified by understanding the characteristics of both Monopoly and perfect competition where monopolistic competition is a cross road between them.
Monopolistic competition actually has certain characteristics like Monopoly like the can have the brand loyalty and market power and apart from that there is an inverse demand curve where they will have the power to set their own price. but similar to perfect competition there are many number of sellers in the market and there are no barriers to entry. that is the reason why it is a midway between both the market structures but the unique feature that distinguishes is the differentiated product where is monopolistic competitive firm has a unique product
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