The main differences between a competitive firm and a monopoly are:

(i) Price Effect: In a competitive market, firms are price takers, meaning they do not have control over the price of the product they sell. They sell their product at the market price and do not have to worry about the price effect lowering their total revenue. On the other hand, a monopoly has control over the price of the product. However, if a monopoly wants to sell more of its product, it must lower its price, which can lead to a decrease in total revenue. This is known as the price effect.

(ii) Marginal Revenue: For a competitive firm, the marginal revenue (the additional revenue that a firm receives from selling one more unit of a good) equals the price of the product. This is because the price is given and does not change with the quantity sold. However, for a monopoly, the marginal revenue is less than the price it is able to charge. This is because a monopoly must lower its price to sell more of its product, which decreases the additional revenue gained from selling one more unit.

(iii) Price and Quantity: As mentioned above, monopolies must lower their price in order to sell more of their product. This is not the case for competitive firms. In a competitive market, firms can sell as much as they want at the market price. Therefore, they do not need to lower their price to sell more. This is a key difference between competitive firms and monopolies.

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The main differences between a competitive firm and a monopoly are:

(i) Price Effect: In a competitive market, firms are price takers, meaning they do not have control over the price of the product they sell. They sell their product at the market price and do not have to worry about the price effect lowering their total revenue. On the other hand, a monopoly has control over the price of the product. However, if a monopoly wants to sell more of its product, it must lower its price, which can lead to a decrease in total revenue. This is known as the price effect.

(ii) Marginal Revenue: For a competitive firm, the marginal revenue (the additional revenue that a firm receives from selling one more unit of a good) equals the price of the product. This is because the price is given and does not change with the quantity sold. However, for a monopoly, the marginal revenue is less than the price it is able to charge. This is because a monopoly must lower its price to sell more of its product, which decreases the additional revenue gained from selling one more unit.

(iii) Price and Quantity: As mentioned above, monopolies must lower their price in order to sell more of their product. This is not the case for competitive firms. In a competitive market, firms can sell as much as they want at the market price. Therefore, they do not need to lower their price to sell more. This is a key difference between competitive firms and monopolies.

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The main differences between a competitive firm and a monopoly are:

(i) Price Effect: In a competitive market, firms are price takers, meaning they do not have control over the price of the product they sell. They sell their product at the market price and do not have to worry about the price effect lowering their total revenue. On the other hand, a monopoly has control over the price of the product. However, if a monopoly wants to sell more of its product, it must lower its price, which can lead to a decrease in total revenue. This is known as the price effect.

(ii) Marginal Revenue: For a competitive firm, the marginal revenue (the additional revenue that a firm receives from selling one more unit of a good) equals the price of the product. This is because the price is given and does not change with the quantity sold. However, for a monopoly, the marginal revenue is less than the price it is able to charge. This is because a monopoly must lower its price to sell more of its product, which decreases the additional revenue gained from selling one more unit.

(iii) Price and Quantity: As mentioned above, monopolies must lower their price in order to sell more of their product. This is not the case for competitive firms. In a competitive market, firms can sell as much as they want at the market price. Therefore, they do not need to lower their price to sell more. This is a key difference between competitive firms and monopolies.

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