ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Monopolistic competition occurs when many companies offer products that are similar but not identical. Firms in monopolistic competition differentiate their products through pricing and marketing strategies.

Detailed explanation-2: -Monopolistic Markets Characteristics Monopolistically competitive markets have the following characteristics: There are many producers and many consumers in the market, and no business has total control over the market price. Consumers perceive that there are non-price differences among the competitors’ products.

Detailed explanation-3: -Products similar but not identical means product differentiations and it is the characteristics of monopolistic competition market.

Detailed explanation-4: -Perfect competition occurs when there is a large number of small companies competing against each other. They sell similar products (homogeneous), lack price influence over the commodities, and are free to enter or exit the market. Consumers in this type of market have full knowledge of the goods being sold.

Detailed explanation-5: -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.