Chapter 11, Problem 1RQ

To determine

The different forms of imperfect competition.

Explanation of Solution

Any market has a large number of sellers in the market and the sellers are price takers and there is freedom of entry into the market and exit from the market. Thus, any market condition which does not qualify as the perfect competition and lies in between the perfect competition and the monopoly is considered to be the imperfect competition. When there are only a few players in the market, it is known as the oligopoly market and when there are many sellers selling the differentiated goods, they are known as the monopolistic competition. These are the different forms of imperfect competition.

Economics Concept Introduction

Imperfect competition: The imperfect competition is the market structure where there are many sellers selling the differentiated products and there will be information asymmetry in the market which provides some market control to the producers.