Monopolistic Competition and Oligopolistic Competition

 Monopolistic Competition and Oligopolistic Competition

In pure monopoly there is a single seller but  the question is what is in monopolistic competition?

You can better understand the monopolistic competition by considering the following characteristics;

Monopolistically competitive markets have the following characteristics:

• There are many producers and many consumers in the market, and no business has total control over the market price.
• Consumers perceive that there are non-price differences among the competitors' products.
• There are few barriers to entry and exit.
• Producers have a degree of control over price.
  

What is the main difference between monopolistic competition and oligopolistic competition?

The main difference between these two is in terms of number of firm and freedom of entry. In monopolistic competition, there exists many firms in market as there are no entry barriers while in oligopoly only few firm exist and has entry barrier for new firms.