As previously stated, a monopolistic market allows for the entry and exit of companies. While these factors may have a long-term effect on businesses, resulting in economic losses, these businesses benefit from short-term economic gains due to normal profits. Another critical feature of monopolistic competition is the differentiation of products. Typically, product differentiation takes the form of physical development, market, and market capital differentiation. While physical product differentiation entails firms utilizing unique features, sizes, colours, and designs to differentiate their products, marketing differentiation entails firms utilizing unique packaging and other promotional strategies to increase product sales. Additionally, businesses employ human capital differentiation, in which they create distinctions in their employees' skill sets. As a result, monopolistic completion results in establishing a large number of independent businesses competing in the market.