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Monopolistic competition is the market which is very common. There are various industries which show Monopolistic competition like clothing, shoes, restaurants, and cereals . Some characteristics of Monopolistic competitive market are as follows: There are many producers and consumers in the market. The competitors’ products are differentiated on the basis of non-price factors as perceived by the consumers. There are some barriers to entry and exit. Fourthly, sellers have the control over price to some extent.
An imperfect market is just opposite to a perfect market economy. Therefore, its characteristics are just opposite to imperfect market. There is no pure competition in this market. Production efficiency can never be achieved. Utility maximization is not possible. Moreover, equilibrium cannot be attained and substitution at margin is not possible.