Question
Give the difference between Monopoly and Monopolistic Competition.

Answer

Monopoly Monopolistic competition
$1$. There are numerous buyers and sellers. $1$. There are numerous buyers and also many sellers.
$2$. Substitute goods are either not available or available rarely. $2$. Substitute goods are available easily.
$3$. Other firms cannot enter the market. $3$. Other firms can easily enter or exit the market.
$4$. The firm can control the price to a very large extent. $4$. Firms cannot control the price much.

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