Why does the term "competition" apply to the market structure known as "monopolistic competition"?

Explanation

The term "competition" in monopolistic competition highlights the presence of many sellers and the freedom for firms to enter or exit the market, much like in perfect competition. This distinguishes it from monopoly, where a single firm dominates. Other features, such as downward-sloping demand curves or product differentiation, do not define the "competition" aspect in this context.