Perfect Competitive Market: A market with perfect competition is where there are a very large number of buyers and sellers who are buying and selling an identical product. Since the product is identical in all its features, the price charged by all sellers is a uniform price. Economic theory describes market players in a perfect competition market as not being large enough by themselves to be able to become a market leader or to set prices. Since the products sold and prices set are identical, there are no barriers to entry or exit within such a market place.
Monopoly
market (Dec'13): A Monopoly market is one where there are a large number of
buyers but a very few number of sellers. The players in these types of markets
sell goods which are different to each other and, therefore, are able to charge
different prices depending on the value of the product that is offered to the
market. In a monopolistic competition situation, since there are only a few
numbers of sellers, one larger seller controls the market, and therefore, has
control over prices, quality and product features.
Difference
between Perfect Competition and Monopoly Competition: Perfect and Monopoly
competition marketplaces have similar objectives of trading which is maximizing
profitability and avoid making losses. However, the market dynamics between
these two forms of markets are quite distinct. Monopoly competition describes
an imperfect market structure quite opposite to perfect competition. Perfect
competition explains an economic theory of a marketplace which does not happen
to exist in reality.
Perfect
Competition vs Monopoly Competition
Perfect and
Monopoly competitions are both forms of market situations that describe the
levels of competition within a market structure.
A market
with perfect competition is where there are a very large number of buyers and
sellers who are buying and selling an identical product.
A Monopoly
market is one where there are a large number of buyers but a very few number of
sellers. The players in these types of markets sell goods which are different
to each other, and therefore, are able to charge different prices. Monopoly
competition describes an imperfect market structure quite opposite to perfect
competition. Perfect competition explains an economic theory of a marketplace
which does not happen to exist in reality.