ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Like pure competition, monopolistic competition is a market structure referring to a large number of small firms competing against each other. However, firms in monopolistic competition sell similar but highly differentiated products.

Detailed explanation-2: -1] Perfect Competiton In a perfect competition market structure, there are a large number of buyers and sellers. All the sellers of the market are small sellers in competition with each other.

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.

Detailed explanation-4: -Perfect competition is a market situation where there are a large number of buyers and sellers and selling of identical products takes place. The commodity is sold at a uniform price in the market.

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.