What is a major difference between monopolistic competition and perfect competition?
A)The number of sellers in the markets.
B)The degree by which the market demand curves slope downwards.
C)That products are not standardised in monopolistic competition, unlike in perfect competition.
D)The barriers to entry in the two markets.

Question

Quizplus · Accepted Answer

The major difference between monopolistic competition and perfect competition is that in monopolistic competition, products are not standardized and each firm has some degree of market power to differentiate their products from their competitors. This is not the case in perfect competition where all firms produce identical products. The number of sellers, the slope of the demand curve, and barriers to entry may also differ, but these are not the most significant differences.

What Is a Major Difference Between Monopolistic Competition and Perfect