What is the main difference between a monopoly and monopolistic competition?
Select the correct answer below:
Monopolistic competition is a single firm with high barriers to entry, while monopoly is characterized by an industry with many firms, differentiated products and easy entry and exit.
Monopolistic competition and monopoly are both characterized by the same market conditions, but monopoly implies many firms while monopolistic competition implies few.
Monopolistically competitive firms have discretion in setting prices, while monopolies do not.
Monopolistic competition is characterized by an industry with many firms, differentiated products and easy entry and exit, while monopoly is a single firm with high barriers to entry.