In a monopolistically competitive market, there are many firms the market with products in
that are similar. example of such An an organization would be a restaurant. They offer food,
but be different cuisine such Italian, Mexican or Thai food. A change the pricing it can as in
of one of those cuisines would not make me go from one Mexican food restaurant to another
since the price difference be much. wouldn’t
In a monopolistic market, there only one firm is controlling the entire market and have a
unique product with no substitutes. example such organization would be energy An of an an
provider. the region of California where I live, I only get energy supplied by San In can
Diego Gas and Electric (SDG&E), even I purchase solar if panels and generate electricity, it
is still passed through SDG&E.
In a perfectly competitive market, there are many firms the market with products that are in
identical one another. example of such organization would be agriculture. to An an In
agriculture there be can many farme selling identical rs products.
There are a plethora of differences between perfect competition and monopolistic
competition. First a perfect competition when a market structure where sellers sell similar is
products where a monopolistic competition numerous sellers are as in selling close
substitutes the buyers. The products are standardized with perfect competition opposed to as
to is differentiated. With perfect competition the price determined by supply and demand of
the whole market where with monopolistic competition the price determin by firms as is ed
on their own. The entry and exit is easier for perfect competition cause it has no Barriers but
monopolistic does. The demand curve for a perfect competition horizontal and elastic is
curve. contrast, monopolistic competition have In a downward slope while being elastic as
well. A good example monopolistic competition grocery store and fast food chains. of is
Milk would be and good example of a perfect competition industry cause of the use of the
same product. Monopolistically competitive a very crowded market. This means there are is
few producers offering the same things the market. example of monopolistic in An
competition is the cellphone market. have We few cellphones companies but they offer
services and product of equal value. This allow for competitive prices.
Monopolistic markets on the other hand, has no competition. They set their own prices and
the market just have to accept it. They offer a product or services that no other company can
offer. A few example of monopolistic companies e Utility services and Cable company ar
until recently. A few years back, cable companies never competed against other, but each
streaming services changed all that.Perfectly competitive markets are a consumer dream.
