The situation of monopolistic competition is created by Small number of producers of a commodity, Lack of homogeneity of the product produced by different firms and Imperfection of the market for that product.
In case of perfect competition in the market marginal revenue is always equal to average revenue. They coincide because marginal revenue is equal to average revenue at every output quantity. The equality between marginal revenue and average revenue is the result of perfect competition.
The major difference between perfect competition and monopolistic competition is differentiated product. Product differentiation (or simply differentiation) is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products.
If price and total revenue move in the same direction, then demand is
Constant marginal utility of money is not a assumption of the theory of demand based on analysis of indifference curves. An indifference curve is a graph that shows a combination of two goods that give a consumer equal satisfaction and utility, thereby making the consumer indifferent.
Price discrimination will be profitable only if the elasticity of demand in different markets into which the total market has been divided is