Respuesta :
Perfect competition markets are more economically effective than monopolies.
What is perfectly competitive markets and monopolies?
A perfect market, also known as an atomistic market, is defined by various idealizing conditions, which are together referred to as perfect competition, or atomistic competition, in economics, specifically general equilibrium theory. According to Irving Fisher, a monopoly is a market where there is "no competition," which results in a situation where one person or business is the only supplier of a specific good or service.
The highest amount of economic surplus, or overall benefit to society, from the creation of a thing or service, emerges from equilibrium in a completely competitive market. Therefore, markets with perfect competition are more economically effective than monopolies.
When one firm and its product control an entire sector of the economy, there is little to no competition and customers are forced to buy the particular product or service from the one company.
Hence, perfect competition markets are more economically effective than monopolies.
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