What is difference between monopoly and perfect competition, Managerial Economics

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What is the difference between monopoly and perfect competition?

Monopoly versus Perfect Competition:

1. Perfect competition is equal to monopoly competition, at the perfectly competitive firm's profit-maximizing quantity of output

2. Perfect competition is greater than to monopoly revenue and equal to monopoly competition, at the monopolist's profit-maximizing quantity of output.

Compared long with a competitive industry, a monopolist does the given below:

  • Produces a smaller quantity: monopoly quantity less than control quantity as QM < QC.
  • Charges a higher price: monopoly price greater than control price as PM > PC
  • Earns a profit.

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