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How is Perfect competitive market is different from a monopoly market? - Economic Applications

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

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उत्तर

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.
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