How is perfect competition and monopoly similar or difference from each other?
1 Answer
Jun 7, 2015
perfect competition is when the market price is regulated by the market forces of demand and supply, meaning the market price declines when the supply or demand of that specific market rises or declines gradually, for an example, assuming that oil, a market, operates in a perfect competitive market, whenever the production of oil goes up, with constant demand, the price will decline because the consumer has a further increased choice, whereas monopoly sets its own price, and is heavily protected by the government, is some cases of cause.
