The price of a factor in a monopolistic factor market, as compared to a situation where the monopoly supplier is broken up into a large number of firms selling the factor in a perfectly competitive factor market:

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In a monopolistic factor market, the monopolist has the power to set the price of the factor at a level that maximizes their profit. This price is typically higher than the equilibrium price that would prevail in a perfectly competitive factor market, where no single supplier has the power to influence the market price. Therefore, the price of a factor in a monopolistic factor market is greater than the price of a factor in an otherwise perfectly competitive factor market. Breaking up the monopoly supplier into a large number of firms selling the factor in a perfectly competitive market would eliminate the monopoly power and lead to a lower price for the factor.

The Price of a Factor in a Monopolistic Factor Market