Question

How is Perfect competitive market is different from a monopoly market?

Answer 1

Perfect competitive market is different from a monopoly market on the basis of following points:

1. In a perfectly competitive market, sellers do not have control over the price. However, in a monopoly, the seller has complete control over the price.
2. In a perfect competitive market, there are close substitutes, while in a monopoly, there are no available alternatives.
3. In a competitive market, price is influenced by the interplay of demand and supply forces. However, in a monopoly, the seller has the power to determine the price. In a perfect competitive market, there are no barriers to entry.
4. In monopoly, there exists a significant barrier to entry. There may be various barriers, such as patents or government regulations, that could potentially hinder progress.