Question: Why the Monopoly firm is considered inefficient compare to perfect competition?

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e PMC 1. P=MC 2. P>MR 2. P=MR 3. Quantity produced 3.Quantity produced is higher. Is too low 4. Extremely high barriers 4. No barriers to entry and exit. To entry & exit Q.6 What are the main differences between monopoly and perfectly competitive market? Q7. Why the perfectly competitive market is efficient than monopoly? Comparison between Monopoly and Perfect Competition (Ans of Q.7) A AP C = Area of consumer Surplus (Monopoly) APPC B = Area of consumer Surplus (Perfect Competition) PN C Triangle BCE= Dead weight loss for monopoly market Monopoly Price > MC but Perfectly competitive Price=MC B p MC =AC Monopoly quantity