In both a monopolistically competitive market and a pure monopoly market, firms

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Both monopolistically competitive firms and pure monopoly firms have market power, meaning they can set prices greater than marginal cost. This is because they are not facing competition that would drive them to lower prices to the cost of production. However, monopolistically competitive firms may not be able to make long-run profits due to the lack of barriers to entry, while pure monopoly firms can make long-run profits due to high barriers to entry. Both types of firms may advertise extensively to differentiate their products and attract customers.

In Both a Monopolistically Competitive Market and a Pure Monopoly