Difference Between Perfect And Monopoly Market
Difference Between Perfect And Monopoly Market:
1.
Perfect market is unrealistic in
practical life. But slowly certain commodities are moving towards it. Monopoly
market exists in real time.
2.
Under perfect market only
homogenous products are sold but on the other hand monopoly market deals with
different products.
3. Under
perfect competition, price is determined by demand and
supply of the market. But in monopoly the seller determines the price of
the good.
4.
Monopolist can control the market
price but in perfect competition the sellers have no control over the market
price.
5.
There is no advertisement cost in
perfect market. In other markets it is essential and it is included in the cost
of production and is reflected in the price.
6.
Monopolist sell their products
higher than the perfect competitors except when there is government regulation
or adverse public opinion.
Tags : Managerial Economics - Market Structure
Last 30 days 350 views