Problem 6

Introduction

Monopolistic Competition: is a kind of imperfect competition where there are large number of producers each sell differentiated products and there is freedom of entry and exit in the long run.

Monopoly: is a market situation where there is only 1 supplier of a particular commodity.

Perfect Competition: is a market situation where there are large number of buyers and sellers. And both are well informed. The market price is beyond the control of individual sellers and buyers.