Which market structure involves many buyers and sellers exchanging distinct and differentiated products, allowing some control over price?

The market structure that fits the description of having many buyers and sellers exchanging distinct and differentiated products, which allows for some control over price, is monopolistic competition. In this type of market, numerous firms compete against one another, but each one offers a product that is slightly different from others—such as through variations in quality, branding, or features. This differentiation gives each firm some degree of market power, meaning they can influence their prices to a certain extent rather than being price takers, as seen in pure competition.

In contrast, pure competition involves numerous sellers providing indistinguishable products, leading to a scenario where prices are determined solely by market supply and demand, with no individual firm able to influence the market price. Monopoly refers to a market controlled by a single seller, who holds significant pricing power due to the lack of competition. Lastly, while oligopoly involves a few companies dominating the market, their products may be similar or differentiated, but the key characteristic that limits their ability to set prices unilaterally is the interdependence among firms, unlike the many independent firms in monopolistic competition. Thus, the unique features of many buyers and sellers, along with product differentiation and limited pricing power, uniquely characterize monopolistic competition in this context.