Michael Weiss is a columnist for Foreign Policy, The Daily Beast, and NOW Lebanon. He is also a fellow at the Institute of Modern Russia where he is the editor-in-chief of The Interpreter, an online news and translation journal covering Russian foreign policy and the ongoing war in Ukraine.
Perfectly competitive firms are small in size in relation to the market size â and none of these firms control the market. A monopolist firm, on the other hand, is larger and controls the entire market for its industry. Monopolistic firms are price makers by virtue of their market control.
As inthe case of monopoly, the demand curve confronting a monopolistically-competitive ï¬rm is downward sloping. Thus, monopolistic competitionresults in lower output levels and higher prices when compared with perfectcompetition. Moreover, monopolistically competitive ï¬rms do not produceat minimum per unit cost.