Specify the nature of entry of competitors in perfect competition and

1.	Specify the nature of entry of competitors in perfect competition and monopoly?
Answer» Nature of entry of competitors in perfect competition: 1. Large number of Buyers and Sellers. 2. Homogeneous Product and Uniform Price. 3. Free Entry and Exit. 4. Absence of Transport Cost. 5. Perfect Mobility of Factors of Production. 6. Perfect Knowledge of the Market. 7. No Government Intervention. Nature of entry of competitors in Monopoly: 1. There is a single producer / seller of a product. 2. The product of a monopolist is unique and has no close substitute. 3. There is strict barrier for entry of any new firm. 4. The monopolist is a price-maker. 5. The monopolist earns maximum profit / abnormal profit.

Specify the nature of entry of competitors in perfect competition and monopoly?

Answer»

Nature of entry of competitors in perfect competition:

1. Large number of Buyers and Sellers.

2. Homogeneous Product and Uniform Price.

3. Free Entry and Exit.

4. Absence of Transport Cost.

5. Perfect Mobility of Factors of Production.

6. Perfect Knowledge of the Market.

7. No Government Intervention.

Nature of entry of competitors in Monopoly:

1. There is a single producer / seller of a product.

2. The product of a monopolist is unique and has no close substitute.

3. There is strict barrier for entry of any new firm.

4. The monopolist is a price-maker.

5. The monopolist earns maximum profit / abnormal profit.