ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a perfect competition model, there are no monopolies. This kind of structure has a number of key characteristics, including: All firms sell an identical product (the product is a commodity or homogeneous). All firms are price takers (they cannot influence the market price of their products).

Detailed explanation-2: -Perfect competition is a market structure in which a large number of firms all produce the same product.

Detailed explanation-3: -Monopolistic competition is a market in which a large number of firms compete by making similar but slightly different products.

Detailed explanation-4: -Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly. The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one in monopoly.

Detailed explanation-5: -Monopolistic competition is a market structure where a large number of firms produce similar, though not interchangeable, products. In economics, this type of competitive market falls between monopoly and perfect competition.