Perfect competition and monopolistic both have a large number of buyers and sellers but the former is a price taker whereas the latter is nor price maker or taker and sells differentiated goods unlike perfect which sells homogenous goods. Internet service providers are an example of perfect competition where there is a large number of buyers and sellers long with no barriers to entry and exit. They all provide the same service or good to the customers (internet). Examples for monopolistic will revolve around clothing industries or even customer service industries like restaurants and pubs. Again each has a large number of buyers and sellers along with low barriers to entry and exit. The products are slightly differentiated but are very close substitutes hence high investment in a non-price competition like sales promotion and advertising.
Perfect competition holds precedence over monopolistic as they achieve both allocative and productive efficiency as they set the price equal to marginal cost whereas in monopolistic the price is greater than marginal cost hence reducing the level of consumer surplus and also the level of units produced. The consumer surplus and units produced are higher in perfect when compared to monopolistic competition. This is also due to the fact that marginal cost is equal to marginal benefit in perfect competition and the demand curve is horizontal in perfect whereas downward sloping in monopolistic. The perfect competition also assumes perfect knowledge and incurs no extra cost with respect to sales or advertising hence suggesting an ideal situation whereas in monopolistic the firms charge higher prices to cover their non-price competition cost.
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