Final answer:
It is easier for a monopolist to determine prices as they have market power and face no competition. In contrast, perfectly competitive firms are price takers and must accept the market-established price.
Step-by-step explanation:
It is easier for a monopolist to determine price than for a perfectly competitive firm. In a perfectly competitive market, firms are price takers, which means they have no power to influence the price of the goods or services they offer. The market price is determined by the intersection of supply and demand, and individual firms must accept this price and adjust their output accordingly to maximize profit. In perfect competition, firms aim to produce where marginal cost meets market price, which is also equal to marginal revenue.In contrast, a monopoly represents a market structure with a single firm that has significant control over the market, allowing it to set prices above marginal cost to maximize profits. A monopolist determines its profit-maximizing output where marginal revenue equals marginal cost, then uses the demand curve to set a higher price. This typically results in less output and higher prices compared to perfect competition. Barriers to entry in a monopolistic market prevent other firms from entering and exerting competitive pressure, thus allowing the monopolist to maintain its market power.In conclusion, the determining of prices is part of the monopolist's strategy, which is an intrinsic aspect of monopoly power. In contrast, firms in perfect competition have to accept the market price and have no control over it.