Do belong to different market structures, decisions on prices and yield of the perfectly competitive enterprises and monopolies are not the same. The perfectly competitive enterprises are small enterprises, there is no market power, always under pressure from the easy entry of potential new businesses. We are price takers and choose the output according to the principle MC = P. As the only manufacturer on the market, not under pressure from the entry of potential competitors because the barriers are effective set against the entry into the sector, monopolies have great market power. It's likely impact on the market price, depending on the level of output that the supply. However, in order to maximize profits, monopoly enterprises to choose the output and the corresponding valuation MC = MR the principle <P. Differences so can make the single market outcomes on two market is different. To compare prices and output of a perfectly competitive market with a monopoly market, we have to assume they have the same conditions of demand and costs. We may see demand curve D is common to both the market and the marginal cost MC road of monopolies in the market monopoly is also the synthesis of the road horizontal marginal cost of the enterprises in the market perfect competition. The assumption of such costs, in fact, not always rational. In sectors where monopolies might appear because the economic advantages of scale, the market share for many small businesses will make each business operate at inefficient scale (their average costs will be great) than the centralized production in a business sector. For this reason a certain large enterprise will gradually capture the entire market and become a natural monopoly. Therefore, to our assumptions may accept, imagine a perfectly competitive industry can be turned into a monopoly industry simply by making decisions and valuation yields a concentrate (like the businesses agree to establish a single cartel-monopoly in the industry: the production has been each conducted separately now, but the cartel decided to prices and general productivity production and distribution industry that for every business). What concerns us here is: output and prices changing industry like when a perfectly competitive industry with chemical cartel? As the industry is perfectly competitive industry, the equilibrium price P1 on the market determined by the intersection of the demand curve D and supply curve S - sugar synthesis MC horizontal lines of businesses. In this P1 price, market equilibrium output is Q1. The output of each enterprise is determined according to the principle of marginal cost of the last unit of output of enterprises by P1. If the chemical industry cartel was, above arc S is also the MC's sugar cartel. In order to maximize profits for the cartel, it must choose the output Q2 corresponding to the intersection of the MC said on the street MR. Because MR overlying road in and below the bridge D, smaller output Q2 output Q1. Respectively, rates that cartel P2 - this monopoly would be greater for P1. Thus, in similar circumstances, monopolies tend to be produced with a lower yield and a higher valuation than the equilibrium quantity and price in the market with perfect competition.
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