The Primary Distinctions Between Perfect Competition and Monopoly
In a perfect competitive market, there are many competitors, whereas in a monopoly market, there is little or no competition.
In perfect competition, there are a large number of sellers and buyers for dealing with similar goods and services, but in monopoly, there are a large number of buyers but fewer sellers.
In perfect competition, products are standardised, homogeneous, and identical, whereas in a monopoly, products are not standardised, and substitutes for the products are available.
In perfect competition, the entry and exit barriers are very low, whereas in monopoly, the entry and exit barriers are low and difficult.
In perfect competition, prices are set based on demand and supply, but in a monopoly, firms control the markets.
Prices in perfect competition are usually normal and not high because there are many suppliers, however prices under monopoly are generally high because the firm has market dominance.