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Compare perfect competition and monopoly on the basis of:a. the number of buyers and sellers.b. the market supply curve.c. the nature of the good sold in the market.
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Chapter 8
Perfect competition and pure monopoly
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Refilwe B.
May 20, 2022
Compare transnet with a perfect competitor In terms of price, output and profit
01:59
How is monopolistic compet…
Hello, everyone in this question, we need to compare perfect competition and monopoly on the basis of three driven criteria. So firstly, we'll see what is perfect competition and monopoly market. So a monopolist market and a perfectly competitive market are to market structures that have several key distinctions in terms of market share, price control and bad years to entry. Now we'll compare the three given criterias. First criteria, which is given to us is the number of buyers and sellers in monopolist market. Mhm. There's only one form, not a single seller that sells to the entire market and this particular seller has the full control and he evaluates the market, He runs the whole market and shop. And whereas in the perfect competition this market has number of sellers. Too many sellers. It may be 1, 3 sellers or more than that. And no, and there's no one seller that has full control. All these sellers have control and they can influence the market. We can say that. Yeah. Now, moving to the next criteria, that is the market supply go. So a monopolist market has no supply curve. Okay, we can say this because in monopolies market, there are instances where changes in demand, changes in demand. Golf does not produce a change in both price and quantity. Therefore there's no 1-1 relationship between quantity and price. Whereas in in perfect competition market, we can say that supply curve is same, it seems as marginal Costco why you can say this because the individual supply curve shows how how much output of form in a perfectly competitive market will supply at a given price, so provided that the firm is producing output, the supply curve is same as the marginal cost. Now, the last part of the question, it says that the nature of goods sold any market so in perfect competition market, okay, there are a number of sellers, many number of sellers that sells the same good at different prices. Red rash In monopoly market, there is a single seller excels at his or her, but I eat according to his or her prize. This price in monopoly market does not get affected by any other competitors.
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