Difference Between A Monopoly And A Perfectly Competitive Firm

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“If you allow for a purely capitalistic society, without any type of regulation at all, you will get one monopoly that will eat all of the smaller fish and own everything, and then you 'll have zero capitalism, zero competition - it would just be one giant company” (Tankian, S. n.d.). The preceding quotation from Serj Tankian lays the groundwork for this case assignment. An assignment that will analyze the differences of the demand curve facing both a monopoly and a perfectly competitive firm. Also, exploration will be performed that will uncover the items that will likely be produced under monopoly type of conditions. Followed by, a brief description of a monopoly I interact with a daily basis will be elaborated upon in this paper. Finally, it will be revealed on what type of firm has a zero economic profit in the long run. Let us commence by identifying the difference of a monopoly and a perfectly competitive firm. Demand curve differences: Prior to demonstrating the differences of demand curve facing a monopoly versus that of a perfect competitive firm. It may be prudent to define the term monopoly and a perfect competitive firm. With the assistance of various sources including the background materials, the manner in which I interpret a monopoly is as follows. It’s my understanding that a monopoly completely dominants production of a certain good or service with virtually no competition in a certain segment of the market. An example, of this is U.S. Steel from
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