Imperfect Competition Case Study

985 Words4 Pages
Imperfect Competition: In this type of market, there are large number of sellers and they all sell different products. This is a market situation, the suppliers sell dissimilar products in comparison to the perfect market situation where there are identical products being sold by different sellers. Perfect competition- Perfect competition is a market where there is a large number of buyers and sellers buying and selling identical products without any restrictions on their entry and exit and having perfect knowledge of the market at the same time. Examples of product in perfect competition market are agriculture goods, such as vegetable, fruits and others. Monopoly: The word monopoly is a Latin word. Monopoly is made up of the word ‘mono’,…show more content…
These few firms produce either identical or differently products and entry of new sellers is difficult or impossible. In this market the goods produced and sold are homogeneous or differentiated. If only two firms exist in the market, it is called duopoly. Examples of this market include the market of automobile, cement, television and petroleum. Monopolistic: Monopolistic competition is a market structure in which a large number of sellers sale close substitution products. In this type of market, the goods produced and sold different, but they are close substitution of each other. Monopolistic competition is a combination of perfect competition and monopoly. There are various examples of this type of market and some of these are the market of goods such as shoes, books, watches, toothpaste,…show more content…
An example of this type of monopoly is Microsoft which have the complete monopoly over its resources in the market. Well, let me tell you why Microsoft is a Natural Monopoly Microsoft has a great reason to get started and support a complete control, if it could do so without true competition forcing it to get changed to other form prices. Software is unlike any other business. Because the marginal price of software is almost zero (and in the Case of OEM distribution and amount giving authority to do actually is zero, since the licensee pays for any making a parcel and distribution), its mean Total price as going on all the time says no to with amount, and because getting wider (greater) the number of software units only has to do with making copies, there are no diseconomies of scale and no need to increase fixed gives idea of price. Because marginal price is so low, mean Total price as going on all the time says no to as it asymptotically moves near marginal price, and unlike many other industries, mean Total price never gets up. In this way, Microsoft is a natural (being) the only one in a
Open Document