A market is said to be a perfectly competitive market where a sharp competition exists between a large number of buyers and sellers for a homogeneous product at only one price in all over the market.
Shape of the demand curve of perfectly competitive market
A perfect Competition firm has the goal to maximize economic profit, which equals total revenue minus total cost. A table representing perfect competition market is shown below:
| Quantity | Price |
| 1 | 10 |
| 2 | 8 |
| 3 | 6 |
| 4 | 4 |
The above table shows the different price of the different quantity of a perfectly competitive firm. The graphical presentation of the above table is given below:
In a perfectly competitive market, there remain several products with several prices, every consumer has to buy a product at a bargaining rate as the perfectly competitive firm is called a price taker.
Shape of the demand curve of Monopolistic
A Monopolistic firm has the goal to continue a certain price in a market for economic development.A table representing perfect competition market is shown below:
| Quantity | Price |
| 1 | 4 |
| 2 | 4 |
| 3 | 4 |
| 4 | 4 |
The above table shows the different price of the different quantity of a monopolistic firm. The graphical presentation of the above table is given below:
In a monopolistic market, there remains the same price, every consumer has to buy a product at a fixed rate.
