A monopoly is considered more desirable to society than a perfectly competitive firm because a monopoly has the incentive to pursue research and development.

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A perfectly competitive firm has the same incentive to pursue research and development as a monopoly, as they both seek to improve their products and stay ahead of competition. However, a perfectly competitive market is seen as more desirable to society as it promotes greater efficiency, lower prices, and more choice for consumers. A monopoly has the ability to restrict output and charge higher prices, generating inefficiencies and reducing social welfare.

A Monopoly Is Considered More Desirable to Society Than a Perfectly