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24. PERFECT COMPETITION
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MONOPOLY
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1.
Meaning
It is a market structure in
which there is a high degree of competition because there are a large number
of sellers.
2.
Nature of product
The product is homogeneous and
therefore perfect substitute.
3.
Price taker/maker
The firm is price taker. Thus,
the firm has horizontal demand curve.
4.
Barriers
There
is free and exit.
5.
Price
Discrimination
Price
discrimination is not possible as consumers have complete knowledge about the
market.
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There is no competition. There is only one
seller in the market.
The product has no close substitute.
The firm is a price maker. Thus, the firm
has a downward sloping demand curve.
Barriers
There are strong entry barriers.
Price discrimination is possible as sellers
has complete hold over the market.
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PERFECT COMPETITION MONOPOLY
