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Mention the similarities between perfect competition and monopolistic competition?

Answer»
Perfect CompetitionMonopolistic Competition
1. Large number of buyers and sellers1. Large number of buyers and many sellers
2. Homogeneous product & uniform price2. Close substitute commodity
3. Free Entry and exit3. Free Entry and exit
4. Very small size of market for each firm4. Small size of market
5. It has no monopoly power5. Limited power
6. Uniform power (or) low price6. Moderate power
7. Price policy price taker7. Low control elasticity of demand
8. Price elasticity – infinite8. Some control over price depending on consumers brand loyalty



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