Although monopoly and perfect competition result in different market outcomes,the fact that firms in both market structures work to maximize their profits ensures that resources are allocated efficiently in both situations.

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In a monopoly, a single firm controls the market, leading to higher prices and lower output compared to perfect competition, where many firms ensure prices are close to marginal costs, promoting efficient resource allocation. Monopolies can result in allocative and productive inefficiencies, unlike perfect competition, which is characterized by optimal resource allocation.

Although Monopoly and Perfect Competition Result in Different Market Outcomes,the