Question

What is the relationship between product

differentiation and monopolistic competition?

Short answer

In both product differentiation and monopolistic competition differentiated or separate products to deal with.

Step-by-step solution

Step 1. Product differentiation and monopolistic competition. 

A market system in which a high number of vendors sell distinct items is known as monopolistic competition.

Step 2. Explanation

Monopolisitc competition is a market structure that is a combination of a monopoly and perfect comeptition. Differentiation of products causes monopolisitc competition to differ from perfect competition. It the element of product differentiation that makes this market a blend of monopoly and perfect comeptition.