Question

What is a competitive market and firm vs. a monopolistic firm?

Answer 1

Competitive market is a market type in which-

there are large number of sellers and buyers in the market .

prices decided by the market forces that is demand and supply in the market .

There is no barrier to entry and exit in the market .

Products are homogeneous in nature .

Monopolistic competition form is a type in which -

There are few barrier to entry and exit .

There are large number of sellers and buyers in the market .

products are slightly differentiated in terms of Shape, size ,colour etc