Compare and Contrast Monopoly

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Introduction
The world of business comprises different structures of markets in which buyers and sellers interact as they conduct transactions. Most of these markets are distinguished from others by their characteristics. However, most people may prefer a certain markets due to the advantages that might be associated to it. Therefore, the economy will always remain diversified by different types of markets. These markets include the monopoly, perfect competition, duopoly, oligopolistic among others. In this paper, I will focus on the two types, the monopoly and the perfect competition.
Comparison of the two markets
In both markets, only one goal is pursued by the seller which is profit maximization. In any kind of business, the main motivation is the profit that is yielded in the market.
Moreover, in both markets there are only two participants who depend on each other. The buyer and the seller are dependent on each other. For the markets to be complete, the two must be involved.
In the perfect competition and monopoly structure, firms always operate at a position where the average cost is equal to the price of the product.
Differences of the markets
In the perfect competition, there are many buyers and sellers: each of the sellers supplies only a small quantity of the total output in the market. On the other hand, the monopoly structure comprises of only one seller and many buyers. The single seller supplies the whole amount of quantity to the market and has total control of the market (Ray, 111).
Secondly, in the perfect competition structure, neither the buyer nor the seller can determine the market prices. Only the market forces of demand and supply are the determinants of prices and all buyers and sellers have to consider the price given. This is contrary to the monopoly structure as the seller is the sole determinant of the market price of the product.
In the perfect competition, there is free exit and entrance to the market by firms. There are no barriers, buyers can enter or leave the market at their own will. On t...