In a monopoly market structure, how does the monopolist's price-setting power affect consumer welfare compared to a perfectly competitive market?

In a monopoly market, a single company controls the entire supply of a product, which gives it the power to set prices higher than in a competitive market. This means that consumers often pay more for goods and have fewer choices since there are no other companies offering similar products. In contrast, in a perfectly competitive market, many firms compete by selling similar products, which keeps prices low and benefits consumers. For example, if a monopolist sells a unique medicine at a high price, patients may struggle to afford it, while in a competitive market, multiple companies selling the same medicine would drive prices down, making it accessible to more people. Overall, monopolies can reduce consumer welfare by limiting access and increasing costs.