Explore BrainMass

monopoly and perfect competition

Please explain in your own words

How does monopoly differ from perfect competition?


© BrainMass Inc. brainmass.com July 19, 2018, 3:43 am ad1c9bdddf

Solution Preview

The two market structures can primarily be divided along the following lines: number of producers, product uniqueness, cost of entry and exit, pricing mechanism, and profit status.

With a monopoly we have one firm, or more likely one very dominant firm in the market, while perfect competition sees a lot of smaller firms. Governments use many indices to measure the power that firms have in market with the ...

Solution Summary

Contrast monopoly from perfect competition.