Differentiate perfect and monopoly competition

Question

Differentiate between perfect competition and monopoly competition?

Answer 1

In a monopoly , you are achieving an unfair advantage over any competition because you own so many structures. Monopolies can also be named as trusts that is why you sometimes hear of Anti-Trust Law violations.

At one time, AT&T owned each and every phone, phone line and even piece of phone equipment in the nation. They controlled the industry how could you compete with them when they owned each and everything? Likewise the Post Office has an excellent infrastructure for delivering mail, but they do not have a monopoly because FedEx and UPS and DHL have all found ways to carve out a healthy piece of the parcel moving business, they do OK in competition even though UPS always grumbles about the Post Office.