| TABLE 3 | COMPARISON BETWEEN PERFECT COMPETITION AND MONOPOLY |
| Perfectly competitive firms and monopoly firms differ in the number of firms in the industry, the ability to set prices, the barriers to enter the industry, the ability to earn long-run economic profits, and the likelihood of achieving a socially efficient output. |
| Perfect Competition | Monopoly |
| Many firms | One firm |
| Price taking | Price making |
| No barriers to entry | Significant barriers to entry |
| Marginal Revenue = Price | Marginal Revenue < Price |
| Zero economic profit in the long run | Potential economic profits in the long run |
| No deadweight loss (efficiency) | Deadweight loss (inefficiency) |