Monopolistic competition is a market type in which there are many firms competing with each other. Each firm produces a differentiated commodity. Firms compete on the basis of commodity quality, price, and marketing. It’s easy to enter in and exit out from the market. In imperfect competition, firms can influence the prices of the commodity which they produce. Thus, they are not just price takers as in the perfect competition. Conversely, they can be price setters. The basic type of imperfect competition is monopoly in which there is only one producer. In monopoly, the firm does not face a competition and thus is the price setter itself. Intra-industry trade occurs when a country exports and imports with the same commodity category or industry as a whole.