Distinction between perfect competition and Monopolistic Competition (or Imperfect Competition)

Distinction between perfect competition and Monopolistic Competition (or Imperfect Competition)

	Perfect Competition	Monopolistic Competition or Imperfect Competition
1.	Large number of firms	Many firms.
2.	Homogeneous product.	Product-differentiation.
3.	Perfect competition among the sellers in the market.	Many close substitutes.
4.	A firm cannot have independent price policy. It is price taker, not The price-maker.	A firm can have independent price policy. It is price maker.
5.	AR and MR curves are one and the same thing and parallel to the x-axis. AR = MR	AR and MR curves are down-ward sloping and MR remains below the AR. MR < AR
6.	Perfect mobility of the factors of production.	No perfect mobility of the factors of production.
7.	No entire of selling costs.	Significant impact of selling Cost.