ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Monopolistic competition occurs when many companies offer products that are similar but not identical. Firms in monopolistic competition differentiate their products through pricing and marketing strategies.

Detailed explanation-2: -Monopolistic competition In monopolistic competition, there are many sellers in the market. Sellers sell products that are similar but not identical. Products could be close substitutes. Examples are apartments, books, bottled water, clothing, fast food, night clubs, etc.

Detailed explanation-3: -In monopolistic competition, we still have many sellers (as we had under perfect competition). Now, however, they don’t sell identical products. Instead, they sell differentiated products-products that differ somewhat, or are perceived to differ, even though they serve a similar purpose.

Detailed explanation-4: -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-5: -A monopoly is the type of imperfect competition where a seller or producer captures the majority of the market share due to the lack of substitutes or competitors. A monopolistic competition is a type of imperfect competition where many sellers try to capture the market share by differentiating their products.