Is Facebook a perfect completion monopolistic competition ol

Solution

Facebook offers social media network and marketing services that are differentiated from other social media providers. It is a characteristic of monopolistic competition. Besides, Facebook has more than 10 methods of social media marketing and each method has different objectives. Hence, it also creates differentiation. So, Facebook represents a case of monopolistic competition. Further, there are many players in the social media domain and many new players are entering into this domain. It means that there is a relatively easy entry and exit in the domain. Further, Facebook is a price setter for its services.
It is not a case of oligopoly, as players in oligopoly has nearly same products and services. It is not a monopoly because there are many players in the industry. It is also not a perfect competition, because each social media company, offers differentiated products and services. For example, services of LinkedIn is different from that of Facebook and it is different from that of Twitter. So, it belongs to monopolistic competition.