I was playing chess with my friend for fun and I blundered my queen early. I told him I wanted to concede so we could have a rematch but he got mad and made me play it out. Who is more right in this scenario? Should I play out a game if I lose my queen early and know that I am very likely to lose. Its pretty demoralizing to stick it out but I guess its polite.
No. Resigning is completely honorable and legal. Your friend is a bully.
You were right. Resigning is the usual and accepted practice, once you feel that the game has gone so far downhill that there is little left to learn by continuing.
Good players almost always lose by resigning, not by getting mated.
It's not rude to concede, but it is rude to force someone to play on if they want to resign.
Good players know when to resign, when to offer a draw and when the opponent should probably do the same. Most of the games end up in either resignation or draw, checkmates are usually for beginners.
I do sometimes play until the end, if my opponent has a beautiful forced checkmate combination, because I feel like it's more polite than resigning one or two moves before mate. 
Of course, some people would consider it rude instead.
There was a Yugoslav GM called Matulovic who was known for two odd quirks... (1) He would continue playing on long after any other GM would have resigned, and (2) He sometimes ignored the touch-move rule, and if he had just made a blunder he would snatch the piece back off its square and claim "I said J'adoube!".
He was sometimes called J'aboubovic.
I was playing chess with my friend for fun and I blundered my queen early. I told him I wanted to concede so we could have a rematch but he got mad and made me play it out. Who is more right in this scenario? Should I play out a game if I lose my queen early and know that I am very likely to lose. Its pretty demoralizing to stick it out but I guess its polite. I also had terrible positioning