what is the difference between monopolistic competition and perfect competition 
in perfect competition the product offered by competitors is the same item if one competitor increases its price it will lose all of its market share to the other companies based on market supply and demand forces where prices are not set by companies and sellers accept the pricing determined by market activity in monopolistic competition supply and demand forces do not dictate pricing firms are selling similar yet distinct products so firms determine the pricing product differentiation is the key feature of monopolistic competition where products are marketed by quality or brand demand is highly elastic and any change in pricing can cause demand to shift from one competitor to another 