Compared to perfect competition:

Question

Quizplus · Accepted Answer

A) Monopoly has market power and is the sole producer, so it can restrict output to raise price. Therefore, it produces less at a higher price compared to perfect competition where firms are price-takers and produce at the point where P = MC. 
B) Monopoly maximizes profit where MR = MC, and a perfectly competitive firm produces where P = MC. MR for a monopoly is less than price, whereas for a perfectly competitive firm, price equals MR. 
C) In the long run, a monopoly may have economic profits, whereas in perfect competition, economic profits are zero in the long run due to free entry and exit of firms.

Compared to Perfect Competition