Ans:
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.