What is the major difference between perfect competition and monopoly?
A) The slope of the supply curve faced by the firm.
B) The slope of the demand curve faced by the industry.
C) The slope of the supply curve faced by the industry.
D) The slope of the demand curve faced by the firm in different market structure.

Question

Quizplus · Accepted Answer

In a perfect competition, the demand curve faced by the firm is perfectly elastic, indicating that the firm can sell any quantity of goods at the market price. In contrast, a monopoly faces the market demand curve, which is downward sloping, indicating that to sell more, the monopolist must lower the price. This difference in the slope of the demand curve faced by the firm is a major distinction between these two market structures.

What Is the Major Difference Between Perfect Competition and Monopoly