ABSTRACT
After going through the chapters on perfect competition and monopoly, you may have become impatient, wondering about the relevance of such detailed analysis of the two market forms which are nowhere near to reality. Perfectly competitive markets may be ideal for social welfare, but they don’t exist. While the number of producers of a commodity is very large, there is no variety: every producer produces a homogeneous commodity, which is quite unrealistic. On the other hand, private monopolies are rare, if any. Most of the goods or services produced in monopoly market are public monopolies, which are not guided by profit motive alone.
