Monopolistic competition includes the elements of both monopoly as well as perfect competition. Explain how?
Dear Student,
Like perfect competition in monopolist there are large number of buyers and seller. Similar to perfect firm they also enjoy free entry and exit.
Like monopoly there is lack of perfect knowledge about market. The factors of production lack free mobility in monopolistic market as in monopoly.
Regards
Like perfect competition in monopolist there are large number of buyers and seller. Similar to perfect firm they also enjoy free entry and exit.
Like monopoly there is lack of perfect knowledge about market. The factors of production lack free mobility in monopolistic market as in monopoly.
Regards