| Monopolistic competition | Monopoly |
| (a) There are a large number of sellers. | (a) There is a single seller. |
| (b) There is product differentiation, products are close substitutes for each other. | (b) Unique products with no close substitutes. |
| (c) Price elasticity of demand is more. | (c) Price elasticity of demand is less. |
| (d) Firms have some control over price. | (d) Monopolist has considerable control over price. |
| (e) Presence of selling cost is an important feature. | (e) No selling cost as there is no competition. |
| (f) Free entry and exit of the firm. | (f) Barriers to entry of a new firm. |
| (g) Price discrimination can not be followed. | (g) Price discrimination may be followed under certain conditions. |
