monoplistic competition involves slightly differentiated products while monoply involves a single product.
Monopolistic competition involves slightly differentiated products while monopoly involves a single product. In a monopoly there is exclusive control of the supply or trade of a commodity or service. In monopolistic competition the competition is imperfect and many producers sell products that are slightly different and not perfect substitutes.
monoplistic competition involves slightly differentiated products while monoply involves a single product.
Product differentiation
Monopoly means that there are no competitor for your product or servises
In monopolistic competition, firms capture monopoly profits through specialisation of their product, making it non-substitutable with competing firms' products. In oligopolistic competition, this does not occur. Instead, three are three general outcomes: 1) firms collude to mimic a monopoly and share monopoly profits; 2) a dominant firm leads the market and sets the price; 3) firms compete freely and but take each other's decisions into account.
While monopolistic competition features many small firms competing against each other, oligopoly features competition amongst a few large firms. Both structures represent imperfect market competition.
monoplistic competition involves slightly differentiated products while monoply involves a single product.
In monopolistic competition, sellers can profit from the differences between their products and other products.
Product differentiation
Monopoly means that there are no competitor for your product or servises
In monopolistic competition, firms capture monopoly profits through specialisation of their product, making it non-substitutable with competing firms' products. In oligopolistic competition, this does not occur. Instead, three are three general outcomes: 1) firms collude to mimic a monopoly and share monopoly profits; 2) a dominant firm leads the market and sets the price; 3) firms compete freely and but take each other's decisions into account.
While monopolistic competition features many small firms competing against each other, oligopoly features competition amongst a few large firms. Both structures represent imperfect market competition.
What is the difference between perfect competition and pure monopoly
Under pure competition there are large number of buyers and sellers, homogeneous products and free entry and exit. Whereas under Monopoly there is a single seller, there are no close substitutes for the commodity it produces and there are barriers to entry.
A monopoly involves no competition at all while pure competition involves a high level of competition.
A monopoly involves no competition at all while pure competition involves a high level of competition.
Monopoly means a market situation in which there is only a single seller and large no. of buyers. whereas monopolistic competition is a market situation in which there is large no. of sellers and large number of buyers. In monopolistic competition, close substitutes are there in the sense that products are different in terms of size, color, packaging, brand, price, etc. as in the case of soap, toothpaste, etc. In monopoly, there is no close substitute of the good, if any, it will be a remote substitute. In monopolistic competition, there is aggressive advertising but in monopoly, there is no advertising at all or a very little. In monopolistic competition, demand curve faced by the firm is more elastic because of availability of close substitutes. It means if a firm raises its price, it will lose its large market share as customers in large will shift to close substitutes present in the market. In monopoly, the demand curve faced by the firm is less elastic because of no close substitutes. It means if the firm raises its price, demand will not fall in a large quantity as it is only one in the market.
Monopoly is a market structure where single seller sell its goods and service to large number of buyer. Monopoly firms itself industry because in monopoly only one seller are exists in market. Monopolistic market structure reflect the market situation where large no. of buyer and seller are enjoying. The main similarities between monopoly and monopolistic competition are as follow:- . 1) Both market are price maker i.e. price and level of output is decided by firm itself. 2) Large number of buyer are present in the market. 3) Product differentiated on the basis of size, brand, packing feature etc.