Question

State any two features each of monopoly and monopolistic competition.

OR

State four features of a perfectly competitive market.

Answer 1

Monopoly :

(1) Only one producer

(2) No freedom of entry to new firms, etc.

Monopolistic Competition

(1) Large number of sellers and buyers

(2) Firms produce diiferentiated products.

(3) Freedom of entry and exit to firms

(4) Perfect knowledge about market

OR

Perfect competition : (1) Large number of sellers and buyers

(2) Firms produce homegeneous product

(3) Freedom of entry and exit to firm

(4) Perfect knowledge about market and technology