A monopolist and a perfectly competitive firm both maximize profits.

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Both a monopolist and a perfectly competitive firm strive to maximize profits. However, the strategies they use to do so differ. A monopolist restricts output and charges a higher price, while a perfectly competitive firm produces at the point where marginal cost equals price. Both types of firms will aim to maximize profits, but the strategies and outcomes will differ due to the presence or absence of market power. A monopolist has the ability to restrict output and raise prices, while a perfectly competitive firm must take the market price as given and produce at the level where marginal cost equals the price.

A Monopolist and a Perfectly Competitive Firm Both Maximize Profits