Question

The difference between monopolistic competition and pure monopoly is that in comparison to monopolistic​ competition, pure monopoly has A. at least one​ competitor, a patented​ product, little price​ control, and few entry barriers. B. one​ firm, a patented​ product, some price​ control, and entry barriers. C. one​ firm, a unique​ product, price​ control, and entry barriers. D. at least one​ firm, a patented​ product, some price​ control, and few entry barriers.

Answer 1

Answer: one firm, a unique product, price control, and entry barriers. (C)

Explanation:

A pure monopoly is a form of market structure where there is only one company that is the single source for a product and no close substitutes for the product. Pure monopolies are rare and for a pure monopoly to exist, there must be barriers to entry which prevents competitors.

Monopolistic competition is a form of imperfect competition where there are many producers selling products which are differentiated from one another maybe by quality or branding and therefore are not perfect substitutes. Monopolistic competition has fewer firms, some price control.

Answer 2

Answer:

C. One firm, a unique product, price control and entry barrier

Explanation:

Monopolistic competition: This is a market structure in which there are many sellers selling differentiated product.

Differentiated product are products which differs in quality, brand name, styles.

Features of monopolistic competition

1. Many sellers and buyers

2. Existence of competitors

3. Sellers sell differentiated product

4. Limited price control.

Monopoly: This is a market structure characterized by a single seller selling a unique product in the market.

Features of Monopoly

1. There is a single seller and many buyers.

2. Seller sells a unique product.

3. There is entry barrier, that is, no free entry.

4. Presence of price control

5. Absence of competitors.