Comparison between perfect competition and monopolistic competition
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In perfect competition, large no. Of sellers are selling homogeneous product. Monopolistic competition is basically combination of Monopoly and perfect competition.
The principal difference between these two is that in the case of perfect competition the firms are price takers, whereas in monopolistic competition the firms are price makers. Perfect competition is not realistic, it is a hypothetical situation, on the other hand, monopolistic competition is a practical scenario.
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