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monopoly and perfect competition

Please explain in your own words

How does monopoly differ from perfect competition?


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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.