| Perfect Competition | Monopolistic Competition |
| 1. Large number of buyers and sellers | 1. Large number of buyers and many sellers |
| 2. Homogeneous product & uniform price | 2. Close substitute commodity |
| 3. Free Entry and exit | 3. Free Entry and exit |
| 4. Very small size of market for each firm | 4. Small size of market |
| 5. It has no monopoly power | 5. Limited power |
| 6. Uniform power (or) low price | 6. Moderate power |
| 7. Price policy price taker | 7. Low control elasticity of demand |
| 8. Price elasticity – infinite | 8. Some control over price depending on consumers brand loyalty |