How do strategic behaviors differ between firms in perfect competition and those in a monopoly?

In perfect competition, many firms sell identical products, and no single firm can control the market price. Because of this, firms focus on being efficient and minimizing costs to stay competitive, as they must accept the market price. For example, a farmer growing corn will sell at the market price, and if they can produce corn at a lower cost than others, they can make a profit. In contrast, a monopoly exists when a single firm controls the entire market for a product, allowing it to set prices higher than in competitive markets. A monopoly, like a local utility company, can engage in strategic behaviors like limiting supply to raise prices, since consumers have no alternative options.