Answer:
Monopolistic competition has several drawbacks compared to a monopoly, but only from the point of view of the producers (for consumers, monopolistic competition will always be better than a monopoly).
Explanation:
In monopolistic competition, producers do have some market power, but much less than the market power that they have in monopoly.
This means that the mark up they can add to the price of their products is less than the mark up than can be added in a monopoly. This results in less profits from firms that are under monopolistic competition.
Another drawback is a smaller market share due to higher competition. In a monopoly, a particular producer is the sole seller of a good that has no close substitutes. In monopolistic competition, there are many firms selling a good that is not homogeneous, but that does have somewhat similar substitutes.
