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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