ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -It is easier for a new firm to enter the market under monopolistic competition than oligopoly because monopolistic competition offers freedom to enter or exit a market while oligopoly has many barriers to enter or exit the market, like huge start-up costs and patents.

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: -An oligopoly refers to a market with only a few sellers. Monopolistic competition refers to situations where there are many sellers, but the products are highly differentiated.

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.