CS foundation Comparison between Perfect competition and 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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