ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If a monopolistically competitive firm is in long-run equilibrium, then its short-run average total cost curve is tangent to its demand curve. A market that is monopolistically competitive will tend to have fewer firms than would be the case if the same market was perfectly competitive.

Detailed explanation-2: -Monopolistic competition involves many buyers, many sellers, and easy exit and entry, with slightly differentiated products. The sellers in these markets sell products that are closely related, but not identical. They have features that differentiate them from the competition.

Detailed explanation-3: -Under monopolistic competition, many sellers offer differentiated products-products that differ slightly but serve similar purposes. By making consumers aware of product differences, sellers exert some control over price. In an oligopoly, a few sellers supply a sizable portion of products in the market.

Detailed explanation-4: -In a monopolistic market, there is only one firm that dictates the price and supply levels of goods and services. A perfectly competitive market is composed of many firms, where no one firm has market control.

Detailed explanation-5: -A monopolistically competitive market consists of many sellers, an oligopoly consists of a few sellers, and a monopoly consists of one seller.