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| BASIS FOR COMPARISON | PERFECT COMPETITION | MONOPOLISTIC COMPETITION |
| Meaning | A market structure, where there are many sellers selling similar goods to the buyers, is perfect competition. | Monopolistic Competition is a market structure, where there are numerous sellers, selling close substitute goods to the buyers. |
| Product | Standardized | Differentiated |
| Price | Determined by demand and supply forces, for the whole industry. | Every firm offer products to customers at its own price. |
| Entry and Exit | No barrier | Few barriers |
| Demand Curve slope | Horizontal, perfectly elastic. | Downward sloping, relatively elastic. |
| Relation between AR and MR | AR = MR | AR > MR |
| Situation | Unrealistic | Realistic |
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Piyush Bhatnagar 6 years, 10 months ago
0Thank You