What are competitive elements of monopolistic competition?

In monopolistic competition, firms compete on several key elements: product differentiation, pricing strategies, and marketing. Each firm offers a unique product that is slightly different from others, allowing them to have some pricing power. Additionally, businesses invest in advertising and branding to attract customers and build loyalty. This competition leads to a diverse market with many choices for consumers, though it can also result in inefficiencies due to excess capacity and non-price competition.