Question

What are the main features of monopolistic competition?

Answer 1

1) Large number of buyers and sellers.
2) Free entry and exit of firms.
3) Product differentiation.
4) Less mobility.
5) More elastic demand.

Answer 2

The main features of monopolistic competition are as under:

Large Number of Buyers and Sellers: There are large number of firms but not as large as under perfect competition. ...

Free Entry and Exit of Firms: ...

Product Differentiation: ...

Selling Cost: ...

Lack of Perfect Knowledge: ...

Less Mobility: ...

More Elastic Demand: