Answer:
Monopoly It refers to that form of market in which there is a single firm (or producer) producing a good/service, for which there are no close substitutes, e.g. Indian Railways, Reserve Bank of India, etc. The main features of monopoly are stated below: (i) Single producer (ii) No close substitutes (iii) Barriers to entry (iv) Independent price policy (v) Price discrimination is possible Monopolistic Competition It is a market situation in which there are many sellers of a particular product but the product of each seller is differentiated from the other, e.g. soaps and toothpastes. The main features of monopolistic competition are stated below: (i) Large number of buyers and sellers (ii) Freedom of entry or exit (iii) Product differentiation (iv) Imperfect knowledge (v) Selling costs (vi) High transportation costs
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