Which of the following statements accurately describe characteristics of monopolistic competition and its graphical representation? Select all that apply.

Monopolistic competition is a market structure where many firms sell similar but not identical products. In this type of competition, each firm has some control over its prices because their products are slightly different from each other, like how different brands of cereal have unique flavors. On a graph, the demand curve for a firm in monopolistic competition is downward sloping, meaning that if a firm wants to sell more products, it has to lower its prices. Additionally, in the long run, firms can enter or exit the market freely, which leads to zero economic profits, as new firms will enter if existing firms are making profits. For example, if a new coffee shop opens in a neighborhood, it might attract customers from existing shops by offering a unique blend, but over time, if too many shops open, they will all have to lower prices to compete.