Difference Between Monopolistic Competition vs. Monopoly
Difference Between Monopolistic Competition and Monopoly
Differences between Monopolistic Competition and Monopoly are explained in the below table,
But Not Identical
|Industry Entry & Exit Barriers||Easy Industry Entry & Exit||Very High Barriers.|
Nearly Impossible To Entry/Exit.
|Industry Competition||High||No Competition|
|Number Of Producers (Sellers)||Large No Of Producers||Only One Producer|
|Market Power Of Individual Firm|
(Ability To Control The Price)
|Has Low Control Over Price||Very High.|
Has the Complete Control Over Price
|Ability To Control The Output||Has Low Control Over Output||Has the Complete Control Over Output|
|Possibility To Earn Super Normal Profits||Low Possibility||High Possibility|
|Individual Producer’s Market Share||Low||Complete Market Share|
|Producer’s Possibility To Reach Economies of Scale||Low||Very High|
Differences between Monopolistic Competition and Monopoly are explained in the below points,
- Product Features of Monopolistic Competition are Highly Substitutable, Highly Similar, But Not Identical. But in a Monopoly, Product Features are Unique, and No Substitutes.
- Industry Entry & Exit Barriers are Easy in Monopolistic Competition. But comparatively, there are Very High Barriers To Entry/Exit in Monopoly (Nearly Impossible).
- Industry Competition is High in Monopolistic Competition. But in Monopoly, there is No Competition.
- There are a Large Number of Producers (Sellers) in Monopolistic Competition. But comparatively, there is Only One Producer in Monopoly.
- There is Low Market Power of an Individual Firm (Low Ability To Control The Price) in Monopolistic Competition. But comparatively, it is Very High in Monopoly. Individual firms in Monopoly have Complete Control Over Price.
- There is a Low Possibility of Earning Super Normal Profits in Monopolistic Competition. But there is a High Possible in Monopoly.
- There is a Low Ability for a Firm to Control the Output in Monopolistic Competition. But Firm Has the Complete Control Over Output in Monopoly.
- Individual Producer’s Market Share is Low in Monopolistic Competition. But Comparatively, the Firm has the Complete Market Share in Monopoly.
- There is a Low Individual Producer’s Possibility of Reach Economies of Scale in Monopolistic Competition. But it is Very High in Monopoly.
- Overview, Definition, & Features of Monopolistic Competition
- Main Characteristics / Causes of Monopolistic Competition
- Real Examples of Monopolistic Competition (in USA, Canada, World)
- Advantages and Disadvantages of Monopolistic Competition
- Definition, Examples, and Characteristics of Monopoly Market
- Real Examples of Monopoly Market (in the USA, Canada, Australia, World)
- Important Characteristics / Causes of Monopoly Market
- Advantages and Disadvantages of Monopoly Market
- Overview, Definition, Types & Features of Oligopoly Market
- Real Examples of Oligopoly Market (in the USA, Canada, World)
- Seven Important Characteristics of Oligopoly Market
- Advantages and Disadvantages of Oligopoly Market