What Is Difference Between Perfect Competition And Monopoly. The number of sellers is one but the number of buyers is many. Define the break-even situation for a firm.
A monopolist is a price-maker. The number of sellers is one but the number of buyers is many. Perfect competition is not realistic it is a hypothetical situation on the other hand monopolistic competition is a practical scenario.
The principal difference between these two is that in the case of perfect competition the firms are price takers whereas in monopolistic competition the firms are price makers.
The number of sellers is one but the number of buyers is many. If this is so monopoly price will be lower and output higher than under perfect competition. Click to see full answer. Nov 08 2018 The principal difference between these two is that in the case of perfect competition the firms are price takers whereas in monopolistic competition the firms are price makers.
