Monopoly vs Competition

definition

• A monopoly
  • the sole producer
  • faces a downward-sloping demand curve (price decreases, consumer demand more) illustration
  • is a price maker
  • reduces price to increase sales.
• A competitive firm
  • one of many producers
  • faces a horizontal demand curve illustration, same as above
  • a price taker
  • sells as much or as little at the same price.