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Which of the Characteristics Separates It from Perfect Competition and Why? - Economics

Which of the characteristics separates it from perfect competition and why?

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Solution

Product differentiation in monopolistic competition separates it from perfect competition because the products are homogeneous. They are identical in all respects such as size, shape and quality in perfect competition. Selling cost is heavy in the case of monopolistic completion whereas the selling is not incurred as they have perfect knowledge of product in perfect competition.

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