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What is the difference between monopoly and monopolistic competition in the context of diamond market?
Wiki User
∙ 9y ago
Monopoly means a market situation in which there is only a single seller and large no. of buyers. whereas monopolistic competition is a market situation in which there is large no. of sellers and large number of buyers.
In monopolistic competition, close substitutes are there in the sense that products are different in terms of size, color, packaging, brand, price, etc. as in the case of soap, toothpaste, etc.
In monopoly, there is no close substitute of the good, if any, it will be a remote substitute.
In monopolistic competition, there is aggressive advertising but in monopoly, there is no advertising at all or a very little.
In monopolistic competition, demand curve faced by the firm is more elastic because of availability of close substitutes. It means if a firm raises its price, it will lose its large market share as customers in large will shift to close substitutes present in the market. In monopoly, the demand curve faced by the firm is less elastic because of no close substitutes. It means if the firm raises its price, demand will not fall in a large quantity as it is only one in the market.
Wiki User
∙ 9y ago
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What best states the main difference between a monopoly and a monopolistic competition?
monoplistic competition involves slightly differentiated products while monoply involves a single product.
What best states the main difference between monopoly and monopolistic competition?
monoplistic competition involves slightly differentiated products while monoply involves a single product.
A significant difference between perfect competition and monopolistic competition is that?
Product differentiation
How are a monopolistic firm and a competitive firm similar?
Monopoly means that there are no competitor for your product or servises
What is the difference between oligo polistic competition and pure monopolistic competition?
In monopolistic competition, firms capture monopoly profits through specialisation of their product, making it non-substitutable with competing firms' products. In oligopolistic competition, this does not occur. Instead, three are three general outcomes: 1) firms collude to mimic a monopoly and share monopoly profits; 2) a dominant firm leads the market and sets the price; 3) firms compete freely and but take each other's decisions into account.
What best states the main difference between a monopoly and a monopolistic competition?
monoplistic competition involves slightly differentiated products while monoply involves a single product.
What best states the main difference between monopoly and monopolistic competition?
monoplistic competition involves slightly differentiated products while monoply involves a single product.
Which is the main difference between perfect competition and monopolistic competition?
In monopolistic competition, sellers can profit from the differences between their products and other products.
A significant difference between perfect competition and monopolistic competition is that?
Product differentiation
How are a monopolistic firm and a competitive firm similar?
Monopoly means that there are no competitor for your product or servises
What is the difference between oligo polistic competition and pure monopolistic competition?
In monopolistic competition, firms capture monopoly profits through specialisation of their product, making it non-substitutable with competing firms' products. In oligopolistic competition, this does not occur. Instead, three are three general outcomes: 1) firms collude to mimic a monopoly and share monopoly profits; 2) a dominant firm leads the market and sets the price; 3) firms compete freely and but take each other's decisions into account.
What is the difference between monopolistic competition and oligopoly?
While monopolistic competition features many small firms competing against each other, oligopoly features competition amongst a few large firms. Both structures represent imperfect market competition.
What conditions does competition occur?
What is the difference between perfect competition and pure monopoly
Which f the following best states the main difference between a monopoly and monopolistic competition?
Under pure competition there are large number of buyers and sellers, homogeneous products and free entry and exit. Whereas under Monopoly there is a single seller, there are no close substitutes for the commodity it produces and there are barriers to entry.
What best states the main difference between a monopoly and pure competition?
A monopoly involves no competition at all while pure competition involves a high level of competition.
What best states the main difference between monopoly and pure competition?
A monopoly involves no competition at all while pure competition involves a high level of competition.
How monopolistic competition like perfect competition?
Monopoly is a market structure where single seller sell its goods and service to large number of buyer. Monopoly firms itself industry because in monopoly only one seller are exists in market. Monopolistic market structure reflect the market situation where large no. of buyer and seller are enjoying. The main similarities between monopoly and monopolistic competition are as follow:- . 1) Both market are price maker i.e. price and level of output is decided by firm itself. 2) Large number of buyer are present in the market. 3) Product differentiated on the basis of size, brand, packing feature etc.
