ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -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.

Detailed explanation-3: -Product differentiation is the key feature of monopolistic competition, where products are marketed by quality or brand. Demand is highly elastic, and any change in pricing can cause demand to shift from one competitor to another.

Detailed explanation-4: -Monopolistic competition is a market structure defined by free entry and exit, like competition, and differentiated products, like monopoly. Differentiated products provide each firm with some market power.

Detailed explanation-5: -Answer: In a Monopolistic Competition, each seller produces a differentiated product which is easily distinguishable from its close substitutes. The two main features of Monopolistic Competition are product differentiation and selling expenses.