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What are 3 differences between a perfectly competitive market and a monopoly market?

What are 3 differences between a perfectly competitive market and a monopoly market?

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Answer #1

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The major differences between a perfectly competitive market and a monopoly market are discussed below.

  • There are large number of buyers and sellers in a perfectly competitive market whereas there is a single seller and large number of buyers in a monopoly market.
  • Under perfect competition , firm is a price taker. But in monopoly market structure , firm is a price searcher.
  • Under perfect competition , firms earn normal profit in the long-run whereas the firm can earn supper normal profit in the long run under monopoly market.
  • There is no barriers of entry and exit in a perfectly competitive market whereas there is a barriers of entry in a monopoly market.
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