ICSE Class X Economics 2020 Solved Papers

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Question : 15
Total: 36
Give any two points of differentiation between perfect and monopolistic competition.
Solution:  
Difference between monopolistic competition and perfect competition :
 Basis of difference  Monopolistic competition  Perfect competition
 Nature of product  In monopolistic competition sellers sell differentiated products.  In perfect competition sellers sell homogeneous products.
 Influence on price  In monopolistic competition, firms are price maker.  In perfect competition, firms are price taker.
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