For example, the cost of resources needed by industry can increase as production levels increase. This will cause the long-run supply curve to rise. Characteristics There are three main attributes of monopolistic competition: • Different, but similar products. - Basically, monopolistically competitive companies get this name because, although companies compete with each other for a specific group of consumers, each company's product has something different. Therefore, each company can be considered a “mini-monopoly” for its specific product. • Large number of businesses – Because there are so many small businesses within monopolistic competitive industries, this is what differentiates them from monopolies. • Free entry and exit: Firms can freely enter a monopolistic competitive market when they believe it is profitable to do so, and can exit when a monopolistic competitive market is no longer