To conclude, it can be stated that the notions of monopoly and perfect competition represent two extremes of market structures. Perfect competition represents a system with high efficiency through comprehensive competition and distinct competition laws. The monopolistic system on the other side represents a system of high inefficiency caused by a minimum of competition and extensive market control by a single firm. If we look at markets in general, situations with negative externalities are less frequent than “normal” market conditions. Therefore I argue, that a perfectly competitive market structure is superior for consumers than a market structure based on a monopoly given its broad range of benefits.
