Imperfect Competition

Imperfect Competition – Imperfect competition refers to market structures where individual sellers or firms have some control over the prices of goods or services due to limited competition. Unlike perfect competition, where no single firm can influence market prices, imperfect competition allows firms to exercise pricing power, differentiate products, or create barriers to entry. This can lead to inefficiencies in the market and reduced consumer choice. Types of Imperfect Competition: Monopoly: Single seller dominates the market. Oligopoly: Few firms control a large market share. Monopolistic Competition: Many sellers offer differentiated products.

Example: A local cable service provider charges higher rates because it is the only provider in the area, illustrating monopolistic control in an imperfectly competitive market.