Give difference between Monopoly and Monopolistic competition. - Vidyadip

Question

Give difference between Monopoly and Monopolistic competition.

✓

Answer

Monopoly	Monopolistic competition
Purchasers are unlimited but producer is only one.	Purchasers are unlimited and producer firms are more.
Scarcity of nearby substitute commodity.	Group of firms produce substitute commodity nearby each other.
Entry of firm is prohibited.	Entry of firm is free.
Control on price of firm is more.	Control on price of firm is less.
In long run equilibrium firm gets abnormal profit.	In long run equilibrium firm gets normal profit.
No near substitute product and only one firm, so selling cost is not necessary.	So many firms are producing near substitute products, so selling cost is necessary.

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