Monopoly and Perfect Competition

Type of Market: Monopoly

• Monopoly is the market where there will be only seller in the market and many number of buyers, it is a price maker

Number of Firms:

• There will be only one firm in the market which will offer a unique product to the buyers.

Freedom of Entry:

• The entry to this market will be restricted anyone can't enter to this market.

Nature of Product:

• There will be a unique product offered by this Firm and only one Seller to satisfy the needs of all the people so it is a price maker.

Example:

• Railways is the best examplr.

Type of Market: Perfect Competition 

• Perfect Competition is the market where there will be a large number of sellers and also buyers in the market, Where the competition will be more in the market is called Perfect competition. It is the price taker they can't influence the market price

Number of Firms: 

• There will be more number of sellers producing the similar products in the market

Freedom of Entry:

• The entry will free in this market everyone can enter in this market there are no barriers in this market, they can enter and exit from the market at any time. There are more number of sellers and buyers in the market

Nature of Product:

• The goods are homogeneous (Similar)

Examples:

• All the Vegetable Markets