Reference- https://www.investopedia.

com/ask/answers/040715/what-are-most-important-aspects-
capitalist-system.asp

Question:

What is the difference between competitive and monopoly capitalism, highlighting their market
mechanisms and sales effort to each one.

ANS-

Context header: Capitalism

Context explanation: capitalism is a kind of economic system in which private companies plays a
prominent role, and government plays a secondary role .most of the economic properties and
production are owned by the individual or private companies.

Answer and explanation:

Competitive capitalism is the stage where a large number of sellers competing in the market to
sell their product and in between any number of sellers a few firms are likely in a better position
from to sell his goods whereas monopoly capitalism is the last stage where free competitive
market replaced with dominant monopoly market. Here, companies slowly attain the dominant
position in the market 

Market mechanism and sales effort of competitive capitalism-

As said above the market is free and competitive for all sellers, but some seller follow some
market mechanism in the short run as well as in the long run like-
 Differentiate his goods in some way either like in taste or price
 Follow the strategy of price discrimination

Market mechanism and sales effort of monopoly capitalism-

Free competitive market replaced with restricted and dominate the market because monopoly
follow some market mechanism to restrict the entry of new firm like-
 Lower the price to the lowest level in the short run so that no new firms are able to sell on
that price and automatically exit from the market.
 Infuse high investment for newer technology to increase his productivity so that capture
consumer surplus in the market