Perfect Competition:
Perfect Competition means where all firm produces homogeneous product and consumer have full information about the product.
Market structure characteristics of perfect competition:
Number and size distribution of sellers: Many small sellers.
No seller is able to exert a significant influence over price.
Number and size distribution of buyers: Many small buyers.
No buyer is able to exert a significant influence over price.
Product differentiation: Product undifferentiated
Conditions of entry and exit: Easy to entry and exit.
Resources are easily transferable among industries.
Monopoly:
Monopoly refers to a situation where a single firm serves an entire market for a good which have no close substitutes.
Examples:
Courier service expenses, post office expenses are the example of monopoly market.
Market structure characteristics of monopoly:
Number and size distribution of sellers: Single sellers
Number and size distribution of buyers: Unspecified
Product differentiation: No close substitutes
Conditions of entry and exit: Easy prohibited or difficult
