Distinguish between “perfect competition and monopoly”

[sajib]

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

[hassan]

good post

[saja]

thanks for providing nice post.

[tree]

Thanks for nice post