Question

The difference between monopolistic competition and pure competition is that compared to pure competition, monopolistic competition has?

Answer 1

The difference between monopolistic competition and pure competition is that compared to pure competition, monopolistic competition has fewer firms, product differentiation, some price control, and relatively easy but not barrier-free entry.

Monopolistic competition occurs when many companies offer competing products or services that are similar but not perfect substitutes. Barriers to entry in a proprietary and highly competitive industry are low, and no single firm's decisions directly affect its competitors.

The best examples of purely competitive markets are agricultural commodities such as corn, wheat and soybeans. Monopolistic competition, like pure competition, has many suppliers and low barriers to entry.

In pure competition, all products are similar. Products may not all be the same and may not be exactly the same in packaging, color, and shape. Since the products are the same, buyers often have no product preferences and buy all products equally.

Learn more about the monopolistic competition here: brainly.com/question/25717627

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