ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In monopolistic competition there are many producers and consumers, with the market composed of a large number of small firms. These firms produce a differentiated product or service, with the opportunity for them to build brand loyalty among their custom-ers.

Detailed explanation-2: -Product differentiation is the key feature of monopolistic competition, where products are marketed by quality or brand. Demand is highly elastic, and any change in pricing can cause demand to shift from one competitor to another.

Detailed explanation-3: -Telecommunication industry is an example of a monopolistic competition.In monopolistic competition there are many sellers but selling slightly differentiate product. They are compete on the basis of quality.

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.