In 3 or 4 sentences, explain why prices decrease when a market moves from a monopoly to perfect competition

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Social Studies

Henry

12 December, 14:13

In 3 or 4 sentences, explain why prices decrease when a market moves from a monopoly to perfect competition

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Rhys Hardin · Answer 1

Prices will decrease when a market moves from a monopoly to a perfect competition mostly due to the fact that different providers of goods will try to outbid the other providers and will for that reason try to provide lower prices; to attract more customers.