Question

What is monopolistic competition?

What is meant by monopolistic competition?

Explain monopolistic competition.

Give the meaning of monopolistic competition.

Answer 1

1. Monopolistic competition is very realistic in nature. In this market, there are some features of perfect competition and some features of monopoly acting together. Prof. E. H. Chamberlin coined this concept in his book “Theory of Monopolistic Competition” which was published in 1933.
2. According to Chamberlin, “Monopolistic competition refers to competition among a large number of sellers producing close but not perfect substitutes.” 

Answer 2

Monopolistic competition is a market structure that combines elements of both a monopoly and perfect competition. It describes an industry where many firms offer products or services that are similar but not identical, meaning they are close but imperfect substitutes.