Question

Difference between monopoly and monopolistic competition and perfect competition

Answer 1

Answer:

In a monopoly market structure, a single product is offered by the seller and there is extreme product differentiation. On the contrary, in a monopolistic competition, as the product offered by different sellers are close substitutes, and so, there is slight product differentiation.

Answer 2

Explanation:

Monopoly is created by a single seller whereas monopolistic competition requires at least 2 but not a large number of sellers. Due to more numbers of players in a monopolistic competition, there exists a competition in sales and prices. Monopoly enjoys its sole control over all characteristics of its products.