Distinguish between the following: 5. Perfect competition and Monopolistic competition

Distinguish between the following:

5. Perfect competition and Monopolistic competition

Answer: 


Perfect Competition
Monopolistic Competition
Products sold are homogenous in nature.
Products sold are differentiated in nature.
There is no selling cost involved. 
Huge selling cost is involved. 
Prices are determined by the forces of demand and supply. The firm is the price taker.
Every firm has its own pricing policy.

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