1.

State any two differences between Monopolistic competition and Perfect competition.

Answer»
BasisMonopolistic CompetitionPerfect Competition
(i)Number of sellerThe number of sellers is fairly large.It is very large.
(ii)Selling costIn order to sell their brand, firms incur heavy selling and advertisement costs. There are no selling costs.
(iii)ProductProducts are differentiated.Products are homogeneous.


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