ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a monopolistic market, there is only one firm that dictates the price and supply levels of goods and services, and that firm has total market control. In contrast to a monopolistic market, a perfectly competitive market is composed of many firms, where no one firm has market control.

Detailed explanation-2: -a marketing situation in which there are a large number of sellers of a product which cannot be differentiated and, thus, no one firm has a significant influence on price. Other prevailing conditions are ease of entry of new firms into the market and perfect market information.

Detailed explanation-3: -In perfect competition, firms produce identical goods, while in monopolistic competition, firms produce slightly different goods.

Detailed explanation-4: -In a pure monopoly, there is a single seller in a market. In monopolistic competition, many firms sell close substitutes in a market that is fairly easy to enter. In an oligopoly, a few firms produce most or all of the industry’s output.

Detailed explanation-5: -Firms in monopolistic competition differentiate their products through pricing and marketing strategies. Barriers to entry, or the costs or other obstacles that prevent new competitors from entering an industry, are low in monopolistic competition.