Question

What is one drawback of pure competition compared to monopolies

Answer 1

Answer:

One drawback of pure competition is that sellers don't have the opportunity to earn more than their competitors unlike in monopolies, the sellers can set their own prices.

Explanation:

Pure competition is a type of situation where sellers offer the same products of the same prices. This is also called "atomistic market." So you can imagine that the different companies have almost the same sale. An example of an item under pure competition is "corn." Vendors (people) usually sell them at the same price and quality. If differences do exist, they're totally irrelevant.