Question

Which best states the main difference between a monopoly and pure competition?

Question 16 options:

A monopoly involves no competition at all while pure competition involves a high level of competition.

A market structure with pure competition is much easier to establish than a monopoly.

Both monopolies and pure competition involve multiple sellers with undifferentiated products.

A monopoly is only possible in a mixed economy while pure competition is only possible in a free-market system.

Answer 1

When you have a monopoly you have a product or service on the market with no competition. On the flip side, in a pure or perfect competition there are various competitors selling the same product or service as you. The main difference between these two are that a monopoly involves no competition at all while a pure competition involves a high level of competition. (the first choice)

The second choice is incorrect because it is harder to establish a product in a pure competition market because you are competing with other companies. 

The third choice is incorrect because a monopoly refers to a company with a product or service and no competition whereas a pure competition refers to one with the same products or services. 

The forth choice is incorrect because they can be present in various economy structures.

Answer 2

Answer:

Monopoly involves no competition at all while pure competition involves high competition

Explanation: