Imperfect competition refers to a market structure that does not meet the conditions of perfect competition. In imperfect competition, there are various factors, such as product differentiation, barriers to entry, and the presence of market power, which allow firms to influence prices and output levels. Unlike perfect competition, where many firms sell identical products and are price takers, firms in imperfect competition can have some degree of control over their pricing and may offer differentiated products. Examples of imperfect competition include monopolistic competition and oligopoly.
What is imperfect competition?
any factor that makes a new firm enter a market
a market structure that does not meet the conditions of perfect competition
a product that is the same no matter who produces it, such as petroleum, notebook paper, or milk
a market structure in which a large number of firms all produce the same product
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