Perfect and Monopoly Markets and Their Difference

CHARACTERISTICS OF PERFECT COMPETITION
1.Firms are small and plenty in number: - In perfect competition there are a large number of firms in the market. Each of them is very small as compared to the whole industry. Individually, none of them is even near to fulfilling the demand of the whole industry.
2.Homogenous products: - All firms produce/provide identical products/services. Thus it makes no difference to the buyer which seller's product he buys.
3.Perfect information: - All sellers and buyers know the prices at which all the transactions take place and what the possible alternatives are. Information costs are zero.
4.Demand is perfectly elastic and the firm is price taker: - Since the companies individually produce a very small percentage of the total industry output, they have no influence on the market price.…