What is the difference between perfect competition and monopolistic competition? October 5, 2022 by 8i9x6 Perfect competition has a large number of small firms while monopolistic competition does not. Perfect competition has barriers to entry while monopolistic competition does not. Perfect competition has no barriers to entry, while monopolistic competition does. In perfect competition, firms produce identical goods, while in monopolistic competition, firms produce slightly different goods. In monopolistic competition, firms produce identical goods, while in perfect competition, firms produce slightly different goods. See Answer In perfect competition, firms produce identical goods, while in monopolistic competition, firms produce slightly different goods.