Question

Distinguish between monopoly and perfect competition based on control over the market price.

Answer 1

Sr. No.	Basis	Monopoly	Perfect Competition
1.	Control over market price	A monopolist has complete control over the price because they are the only producer.	Firms have no control over the price, as the market determines it.
2.	Price determination	The monopolist sets the price based on the quantity produced and demand.	The price is set by the market, and firms must accept it.
3.	Market influence	The monopolist controls the market by being the sole supplier.	Firms cannot influence the market because of the large number of sellers.
4.	Ability to raise or lower price	A monopolist can raise or lower prices to maximize profits.	Firms cannot change the price without losing customers.