What makes monopolistic competition different from perfect competition
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All firms are able to enter into a market if they feel the profits are attractive enough. This makes monopolistic competitionsimilar to perfect competition. ... This is unlike both a monopolistic market, where there are no substitutes for products, and perfect competition, where the products are identical.
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Perfect Competition. In a market that experiences perfect competition, prices are dictated by supply and demand. ... Unlike a monopolistic market, firms in a perfectly competitive market have a small market share. Barriers to entry are relatively low and allow firms to enter and exit easily.
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