Imperfect competition is a competitive market setup that includes multiple sellers engaged in selling heterogeneous goods. Imperfectly competitive markets are a more accurate depiction of the markets in the real world than a perfectly competitive setup. The sellers in an imperfect market have the liberty to influence prices and are thus price makers. The sellers in this market are often protected by barriers to entry
. * What are the types of imperfect markets?
- Monopolistic competition
* What are the characteristics of imperfect competition?
- Number of buyers and sellers
- Heterogeneous Products
- Free Entry and Exit of Firms
- Imperfect Knowledge About the Market
- Price Makers