Give difference between perfect competition and monopoly with 6-6 points
Answers
Answer:
Perfect Competition :
1. Large number of firms.
2. Same goods and services are provided by all the firms.
3. Price is determined by market forces.
4. Profits are neither surplus nor deficit.
5. Buyers have perfect knowledge about the price of the goods.
6. It doesn't exist in reality.
Monopoly:
1. Only one firm.
2. Consumers can approach only one firm for availing goods and services.
3. Price can be changed by that single firm existing in the market, however, the firm cannot charge a very high price as it would make the consumer group smaller.
4. Profits can be surplus or deficit according to the situation.
5. Buyers might not have perfect knowledge about the price.
6. It exists in reality. For example, Services of railways provided by govt. of India