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Definition: Imperfect competition is a competitive market situation where there are many sellers, but they are selling heterogeneous (dissimilar) goods as opposed to the perfect competitive market scenario. As the name suggests, competitive markets that are imperfect in nature. Description: Imperfect competition is the real world competition. Today some of the industries and sellers follow it to earn surplus profits. In this market scenario, the seller enjoys the luxury of influencing the price in order to earn more profits. If a seller is selling a non identical good in the market, then he can raise the prices and earn profits. High profits attract other sellers to enter the market and sellers, who are incurring losses, can very easily exit the market. There are four types of imperfect markets:
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How is imperfect competition different from perfect competition?Imperfect competition occurs when one or more conditions of the perfect competition are not met. Perfect competition is a hypothetical situation, which does not apply in the real world. Conversely, Imperfect Competition is a situation that is found in the present day world.
What is the aspect of imperfect competition that is most distinct from perfect competition quizlet?What is the aspect of monopolistic competition that is most distinct from perfect competition? barriers to entry.
What is the aspect of imperfect competition?In an imperfect competition environment, companies sell different products and services, set their own individual prices, fight for market share, and are often protected by barriers to entry and exit, making it harder for new companies to challenge them.
What is the difference between perfect and imperfect?This kind of past tense is called a perfect tense. It is used to describe an action in the past which is completed. To describe a past action or state which is incomplete, we use an imperfect tense. This tense indicates an action which has gone on over a period time or has happened frequently.
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