Question

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Define a perfectly competitive market.Discuss three differences between a perfectly competitive market and a monopoly.Explain any four factors that lead to Monopoly.​

Answer 1

In perfect compitition,there is very large nomber of sellers and in monopoly there is only few sellers.in perfect compitition,there is homogeneous product and in monopoly differciated product.there is horizontal demand curve in perfect compitition and in monopoly there is downward sloping demand curve.in perfect compitition firm is a price taker and in monopoly price is interdependend and interrelated.