Differentiate between monopoly and monopolistic competition.

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answered Aug 9, 2019 by Helisha (69.5k points)
selected Aug 10, 2019 by Vikash Kumar

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Monopolistic competition	Monopoly
(a) There are a large number of sellers.	(a) There is a single seller.
(b) There is product differentiation, products are close substitutes for each other.	(b) Unique products with no close substitutes.
(c) Price elasticity of demand is more.	(c) Price elasticity of demand is less.
(d) Firms have some control over price.	(d) Monopolist has considerable control over price.
(e) Presence of selling cost is an important feature.	(e) No selling cost as there is no competition.
(f) Free entry and exit of the firm.	(f) Barriers to entry of a new firm.
(g) Price discrimination can not be followed.	(g) Price discrimination may be followed under certain conditions.