ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Monopolistic competition A monopolistic competition market structure features many sellers, meaning that it’s easy to enter the industry.

Detailed explanation-2: -Monopolistic Competition is a market structure where there are many firms, which sells differentiated products, and have easy entry/exit.

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: -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.