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== Monopoly versus competitive markets ==
[[File:Modern Colossus of Rail Roads - Keppler 1879.jpg|thumb|right|235px|This 1879 anti-monopoly cartoon depicts powerful railroad barons controlling the entire rail system.]]
While monopoly and perfect competition mark the
* ''Marginal revenue and price'': In a perfectly competitive market, price equals marginal cost. In a monopolistic market, however, price is set above marginal cost. The price equal marginal revenue in this case.<ref>Mankiw (2007), p. 338.</ref>
* ''[[Product differentiation]]'': There is no product differentiation in a perfectly competitive market. Every product is perfectly homogeneous and a perfect substitute for any other. With a monopoly, there is great to absolute product differentiation in the sense that there is no available substitute for a monopolized good. The monopolist is the sole supplier of the good in question.<ref name="Hirschey, M p. 426">{{cite book | last = Hirschey | first = M | title = Managerial Economics | page = 426 | publisher = Dreyden | year = 2000}}</ref> A customer either buys from the monopolizing entity on its terms or does without.
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{{Portal|Business and economics}}
{{columns-list|colwidth=22em|
* [[Bilateral monopoly]]
* [[Complementary monopoly]]
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