to what extent firm under monopolistic market can influence the price of its prouduct on which factor does it depend?
A monopolistic market is an imperfect competitive market which combines the characteristics of monopoly and perfect competition both. There are a large number of firms in this market but there is a huge chance of product differentiation. There exists no close substitute for a product. Since there are a large number of firms, a single monopolistic firm cannot influence the market, but there is product differentiation, and the monopolistic firm faces a downward sloping AR curve (just like monopoly), it has full freedom to charge different prices for different level of commodity. In other words a monopolistic firm is a Price-setter.