In which market structure do firms have some control over pricing but also face competition from similar products?

The market structure where firms have some control over pricing while still facing competition from similar products is called monopolistic competition. In this type of market, many companies sell products that are similar but not identical, allowing them to differentiate their offerings. For example, think of a local coffee shop that sells unique blends and flavors; it can set its prices based on its special offerings, but it still competes with other coffee shops nearby. This means that if one shop raises its prices too high, customers might choose to go to another shop instead. Overall, firms in monopolistic competition must balance their pricing strategies with the need to attract customers who have other choices.