no bullet points

Question

In one to two sentences, identify one way monopolistic competition and monopoly market structures are the same and one way they are different.(2 points)

Answer 1

Both monopolistic competition and monopoly market structures have some degree of market power, allowing firms to influence prices. However, a key difference is that monopolistic competition features many firms competing with differentiated products, while a monopoly consists of a single firm dominating the market with no close substitutes.