Monopoly refers to a market structure where there is a single seller dominates the whole market by selling his unique product. On the other hand, Monopolistic competition refers to the competitive market, wherein few sellers in the market offer near substitutes to the customers.
In economics, the market is not just a place whereby parties engage in an exchange of goods or services for money but it refers to a system wherein there are many buyers and sellers for a product or service having complete knowledge about market conditions, who bargain and settle the price of the product to make the deal. The market is classified into various categories like area, time, regulation, competition and so on.
Based on competition, the market is divided as perfect competition and imperfect competition. Further, there are three types of imperfect competition, monopoly, oligopoly and monopolistic competition. Many people have trouble in understanding the difference between monopoly and monopolistic competition, so here we’ve simplified it for you.