CS foundation Comparison between Perfect competition and Monopoly
| Basis | Perfect competition | Monopoly |
| Number of Sellers | Large number of sellers and no individual seller has control over the activities of other firms | Single seller and monopolist has full control over the supply. |
| Natur of Product | Homogeneous | There are no close substitutes of the product. |
| Entry and Exit | There is freedom of entry and exit.it leads to absence of abnormal profits and losses in the long run. | There is restriction on entry and exit. So, a firm can earn abnormal profits and losses in the long run. |
| Price | Firm is a price-taker as price is determined by the industry. | Monopolist is a price-maker as firm and industry are one and the same thing. |
| Leve of Knowledge | Buyers and sellers have perfect knowledge about market conditions. | Buyers and sellers do not have perfect knowledge. |
| Demand Curve | The Demand curve is perfectly elastic as price remains same at all levels of output. | Demand curve slopes downward as more output can be sold only at less price. |
| Selling Cost | No selling cost is incurred as buyers and sellers have perfect knowledge about market conditions. | Selling cost is incurred for informative purposes due to lack of perfect knowledge. |
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