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