Monopolistic competition differs from perfect competition only in the number of firms participating in the market.

Question

Quizplus · Accepted Answer

Monopolistic competition differs from perfect competition in several ways, including the fact that firms in monopolistic competition sell differentiated products, have some market power, and can engage in non-price competition. In perfect competition, all firms sell identical products and have no market power.

Monopolistic Competition Differs from Perfect Competition Only in the Number