A major difference between monopolistic competition and perfect competition is the degree of product differentiation.Pure competition has none and differentiation always exists in monopolistic competition.

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by product differentiation, which means that firms are able to distinguish their products from those of their competitors through variations in quality, design, packaging, branding, and other factors. In contrast, perfect competition assumes that all firms produce identical products, so there is no differentiation among them.

A Major Difference Between Monopolistic Competition and Perfect Competition Is