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Monopolistic competition

In real life perfect competition and monopoly are rarely found. What we find in real life is a mixture of two markets, namely Monopolistic competition. The concept of monopolistic competition was introduced by Prof. E. H. Chamberlin of U. S.A in his famous book ‘The Theory of Monopolistic Competition’.
Monopolistic competition market situation is a peculiar blend or combination of both Monopoly and Perfect competition. It is a market situation where a group of monopolists are in competition. Hence in this kind of market situation “Large numbers of small sellers are selling differentiated products which are close but not perfect substitutes”. For example: Market for soaps and detergents, cosmetics, clothing industry etc.,

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