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- DictionaryIm·per·fect com·pe·ti·tion/imˈpərfəkt ˌkämpəˈtiSHən/
noun
- 1. the situation prevailing in a market in which elements of monopoly allow individual producers or consumers to exercise some control over market prices.
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Aug 30, 2021 · Imperfect competition is any economic market that does not meet the assumptions of perfect competition, such as monopolies, oligopolies, and monopsonies. It creates opportunities to generate more profit than in a perfect competition environment, where companies sell identical products and services, set prices, and are protected by barriers to entry and exit.
- Daniel Liberto
- 2 min
Imperfect competition. In economics, imperfect competition refers to a situation where the characteristics of an economic market do not fulfil all the necessary conditions of a perfectly competitive market. Imperfect competition causes market inefficiencies, resulting in market failure. [1] Imperfect competition usually describes behaviour of ...
Imperfect competition is an economic concept that describes marketplace conditions that render a market less than perfectly competitive, creating market inefficiencies and economic losses. It occurs when one or more of the fundamental characteristics of perfect competition is missing, such as many suppliers, low barriers to entry, or complete control of prices. Examples are monopolies, duopolies, oligopolies, and monopsonies.
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Imperfect competition is a market structure where some of its features or sectors are not truly competitive. Learn about the types of imperfect competition, such as oligopoly, monopolistic competition, monopoly and monopsony, and their characteristics and effects.
Start quiz. Level up on all the skills in this unit and collect up to 700 Mastery points! Start Unit test. In real life, markets are almost never perfect! Explore how firms behave in imperfectly competitive markets such monopolies and oligopolies, and how tools like game theory can predict firm behavior in imperfect markets.
Imperfect competition refers to market structures where perfect competition conditions are not fully met, and firms have some degree of market power. Different forms of imperfect markets include monopolistic competition, oligopoly, and monopoly, each characterized by varying levels of competition and market concentration.
