This is a good and fun question that I am still scratching my head oever.

Question

We know monopoly's profit maximisation is MC=MR. We also know that perfect competition's profit maximising criteria is such that P=MC.

Just what exactly does this mean?
I know for one that, the firm tries to maxmise profit as a whole and not just per unit profit.

This question is already answered me . Please go through the question and answer of last ten days and you will get the answer.

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Answer 1

In short, the difference between monopoly and perfect competition is that in a monopoly, the firm is the only seller in the market and can set prices, while in perfect competition, there are many sellers in the market and prices are determined by the market forces of supply and demand. In a monopoly, the firm maximizes profits by setting the price at the point where marginal cost (MC) equals marginal revenue (MR). In perfect competition, the firm maximizes profits by setting the price at the point where price (P) equals marginal cost (MC).