Ans. No, I do not agree with this statement.
Reason:
Perfect Competition
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Monopolistic Competition
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Meaning
Perfect competition is a market situation where there are large number of buyers and seller. Buying and selling homogenous products at a single uniform price.
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It is market structure in which a large number of firms produced and sell products that are differentiated but close substitutes
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Competition
There is high degree of competition
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There is competition among the firms producing very close substitutes.
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Selling Expenses
There is no selling cost because the product is homogeneous.
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Firms incur selling cost to promote sales.
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Price taker/Maker
The firm is price taker. Thus, the firm has horizontal demand curve.
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The firm is a price maker. Thus the firm has a downward sloping demand curve.
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