How is a monololistic competitor different from a monopolist?

Question

hie i dun understand and i can't come with a simple answer for this question please i need help

Answer 1

A monopolistic competitor faces direct competition in the market, however, there is some slight difference in the product.  An example would be laundry detergent, where each product claims to be able to remove certain types of stains.  The monopolist faces no competition.  Because of this, the demand curve for the monopolistic competitor is very elastic, but not quite perfectly elastic.  Monopolistic competition has easy entry or exit and many firms in the market, while monopoly usually has high barriers to entry and one firm in the market.  A monopolist tends to earn long run profits, while the long run equilibrium in monopolistic competition is zero profits.

Answer 2

Monopolistic competitors are like big brand name merchants who sell soap.  They compete with other soap manufacturers, but each has a monopoly on the brand identity.  In the short run they can develop a new characteristic, or just claim something in their advertising, and command a price premium, but in the long run, they will be leapfrogged by a competitor with a different brand name, who succeeds in one-upping the former leader with a new image and will harvest some monopoly benefits for a while.

A pure monopoly has just one seller, and one brand name and faces no competition other than imperfect substitutes, so it can extract a long term monopoly price premium.