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Question
Distinguish between monopoly and monopolistic competition on the basis of entry of firms.
Distinguish Between
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Solution
| Sr. No. | Basis | Monopoly | Monopolistic Competition |
| 1. | Entry of new firms | Entry of new firms is blocked due to legal, technical, or financial barriers. | Free entry and exit of firms are allowed in the long run. |
| 2. | Barriers to entry | High: includes patents, government licenses, or huge capital requirements. | Low: firms can easily enter or exit the market with few restrictions. |
| 3. | Market structure | Dominated by a single seller with no competition. | Consists of many sellers offering differentiated products. |
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Chapter 9: Forms of Market - EXAMINATION CORNER [Page 9.19]
