What is perfect competition? What is monopoly?

Perfect Competition:

Perfect competition is an economic model of a market structure where a large number of small firms compete against each other.

It is characterized by a homogenous product, no barriers to entry, perfect information, and no externalities.

Examples of perfect competition include agricultural goods, retail stores, and the stock market.

Monopoly:

Monopoly is a market structure where only one firm produces and sells a product that has no close substitutes.

It is characterized by a single seller, high barriers to entry, and limited information.

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