QS Study

A market is said to be a perfectly competitive market where a sharp competition exists between a large number of buyers and sellers for a homogeneous product at only one price in all over the market.

Shape of the demand curve of perfectly competitive market

A perfect Competition firm has the goal to maximize economic profit, which equals total revenue minus total cost. A table representing perfect competition market is shown below:

QuantityPrice
110
28
36
44

The above table shows the different price of the different quantity of a perfectly competitive firm. The graphical presentation of the above table is given below:

In a perfectly competitive market, there remain several products with several prices, every consumer has to buy a product at a bargaining rate as the perfectly competitive firm is called a price taker.

Shape of the demand curve of Monopolistic

A Monopolistic firm has the goal to continue a certain price in a market for economic development.A table representing perfect competition market is shown below:

QuantityPrice
14
24
34
44

The above table shows the different price of the different quantity of a monopolistic firm. The graphical presentation of the above table is given below:

In a monopolistic market, there remains the same price, every consumer has to buy a product at a fixed rate.

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