ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A market condition where a large number of firms selling similar but not identical products are termed as Monopolistic Competition. Oligopoly and Monopolistic are the two imperfectly competitive types of market.

Detailed explanation-2: -In monopolistic competition, we still have many sellers (as we had under perfect competition). Now, however, they don’t sell identical products. Instead, they sell differentiated products-products that differ somewhat, or are perceived to differ, even though they serve a similar purpose.

Detailed explanation-3: -Monopolistic competition In monopolistic competition, there are many sellers in the market. Sellers sell products that are similar but not identical. Products could be close substitutes. Examples are apartments, books, bottled water, clothing, fast food, night clubs, etc.

Detailed explanation-4: -In monopolistic competition, many companies compete in a open market to sell products that are similar but not identical.

Detailed explanation-5: -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.