In which market structure do firms have some degree of market power and can influence prices, while still facing competition from similar products?

The market structure where firms have some degree of market power and can influence prices, while still facing competition from similar products, is called monopolistic competition. In this type of market, many firms sell products that are similar but not identical, allowing them to set their own prices to some extent. For example, think about restaurants in a city; each one offers different types of food and dining experiences, so they can charge different prices even though they compete for the same customers. Because there are many choices available, if one restaurant raises its prices too high, customers might choose to go to a competitor instead. This balance between having some control over prices and facing competition is what defines monopolistic competition.