ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Monopolistic competition exists when many companies offer competing products or services that are similar, but not perfect, substitutes. The barriers to entry in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect its competitors.

Detailed explanation-2: -Monopolistic competition is a type of market structure where many companies are present in an industry, and they produce similar but differentiated products. None of the companies enjoy a monopoly, and each company operates independently without regard to the actions of other companies.

Detailed explanation-3: -With easy entry and exit, firms will enter a market where present firms are earning an economic profit and will exit the market where firms are losing money-thus, allowing the remaining firms to earn a normal profit.

Detailed explanation-4: -Monopolistic Competition = A market structure characterized by a differentiated product and freedom of entry and exit.

Detailed explanation-5: -Monopolistic competition features low barriers to entry. Thus entry for new firms is fairly easy, especially if they can differentiate themselves from competitors. Due to product differentiation.