How monopolistic competition like perfect competition?

Answer 1

Monopoly is a market structure where single seller sell its goods and service to large number of buyer. Monopoly firms itself industry because in monopoly only one seller are exists in market. Monopolistic market structure reflect the market situation where large no. of buyer and seller are enjoying. The main similarities between monopoly and monopolistic competition are as follow:-

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1) Both market are price maker i.e. price and level of output is decided by firm itself.

2) Large number of buyer are present in the market.

3) Product differentiated on the basis of size, brand, packing feature etc.

Answer 2

Monopolistic competition is a common market structure where many competing producers sell products that are differentiated from one another

perfect competition occurs in markets in which no participant has market power

Answer 3

There is still only one company that can produce a specific product in a monopolistic competitive market similarly to a normal monopoly. They are also still affected by a downward moving demand curve. The only difference is that there are other companies that make similar products, just not the same exact product.