ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What are the four conditions to monopolistic competition? The four conditions to monopolistic competition are a large number of firms, similar but not perfectly substitutable products, low barriers to entry, and less than perfect information.

Detailed explanation-2: -One of the characteristics of a monopolistic competitive market is that each firm must differentiate its products. Two ways to do this is through advertising and cultivating a brand.

Detailed explanation-3: -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-4: -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.