Compare and contrast monopolistic competition with perfect competition.(b) Compare and contrast...

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Compare and contrast monopolistic competition with perfect competition.(b) Compare and contrast monopolistic competition with monopoly.[10 marks each; Answer each part in 100 word or less

David · Accepted Answer

A perfectly competitive market is a market where no buyer or seller can affect 
the price of the product, all units of the products are homogeneous, resources 
are mobile and knowledge of the market is perfect. Monopolistic competition is 
the form of market organisation in which there are many sellers of differentiated 
product. Main difference between these two forms market is the product 
differentiation by monopolistic firms. Product differentiation makes the demand 
curve which a monopolistic firm faces negative.

Compare and contrast monopolistic competition with perfect competition. (b) Compare and contrast monopolistic competition with monopoly. [10 marks each; Answer each part in 100 word or less

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