Answer: The Difference between Perfectly Competitive market & monopoly Market are given Below:
|
Perfectly
Competitive market |
Monopoly
Market |
|
1.
Perfectly Competitive market is the market in which
there is a large number of buyers and sellers. The goods sold in this market
are identical. A single price prevails in the market |
1. Monopoly is
a type of imperfect market. The number of sellers is one but the number of
buyers is many. A monopolist is a price-maker. In fact monopoly is the
opposite of perfect competition. |
|
2. The average revenue (price) curve under perfect
competition is a horizontal straight line parallel
to OX-axis |
2.
The average revenue curve under monopoly
slopes downward and its corresponding marginal revenue curve lie below the
average revenue curve |
|
3.under perfect competition price equals marginal cost at the
equilibrium output |
3. under monopoly equilibrium price is greater than marginal
cost |
|
4. Under perfect competition marginal revenue is the same as
average revenue at all levels of output |
4. Under monopoly both the AR and MR curve slope downward and
MR curve lies below AR curve. Thus average revenue is greater than marginal
revenue at all levels of output |
|
5. A competitive firm makes only normal profit in the long
run |
5. monopolist can make super normal profits even in the long
run |
|
6. a competitive firm earns only normal profit |
6. monopoly
firm continues earning supernormal profits |
|
7.
A perfectly competitive Market Cannot discriminate prices for his product. |
7. A
monopolist can discriminate prices for his product. |
|
8.
a competitive firm cannot change different prices from
different buyers . |
8. Elastic ties of demand are different in different markets. |