ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Monopolistic competition exists when many companies offer competing products or services that are similar, but not perfect, substitutes. The barriers to entry in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect its competitors.

Detailed explanation-2: -The Pure Monopoly A pure monopoly is a single seller in a market or sector with high barriers to entry such as significant startup costs whose product has no substitutes.

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: -In a monopolistic market, the products are close substitutes of each other but they are not identical in nature. This is known as product differentiation where the nature of the product is similar with a slide variation in it.