Respuesta :
A monopoly compare to pure competition has the same forces of increasing and diminishing returns to determine cost relationships.
What is Monopolistic Competition?
Monopolistic competition is defined as a structure of a common market were organizations have different competitors, but they sell different types of product in the market.
Different kind of small businesses work under the state of monopolistic competition, which includes operated high-street stores, restaurants. and independently owned. for restaurants, each one has an element of uniqueness, and offers something that is not the same, but all are necessarily competing for the same customers.
Monopolistic competition can also be called a competition that is imperfect in a way that, different producers sell products that are different from one another.
What is Pure Competition ?
Pure competition is a market structure that involves different manufacturers providing customers with similar products. A large number of homogenous goods, many sellers that can easily enter the market, and customers who have full information about the companies and their products create a perfect environment for this market model.
In conclusion, A monopoly has the same factors of increasing and diminishing returns that determine cost relationships as pure competition.
Learn more about Pure Monopoly on:
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