Explore BrainMass
Share

monopoly and perfect competition

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

Please explain in your own words

How does monopoly differ from perfect competition?

Thanks

© BrainMass Inc. brainmass.com September 23, 2018, 10:09 am ad1c9bdddf - https://brainmass.com/economics/electrical-utilities/monopoly-and-perfect-competition-357952

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.

$2.19