Microeconomia

COMPETITION MARKETS

Competition refers to the existence of a large number of companies or people who offer and sell a product (they are bidders) in a given market, in which there are also people or companies, called consumers or applicants, which, according to their preferences and needs, they buy or demand these products from the suppliers. In some cases, the competition is presented with different intensity and at different levels, which make a different classification system appear.

Perfect competition

Imperfect competition.

There are two types of competition

Large number of buyers and sellers

Law of supply and demand

Pricing singularity

Well homogeneous

Monopoly

Oligopoly

Monopolistic competition

Duopoly

Monopsony

Oligopsony

Only seller of a product

Barriers to entry for new companies

Some sellers and barriers to entry

Homogeneous and differentiated product

Lots of sellers, free entry to the market, differentiated product

Two companies and identical products

Resultados de traducción

identical products

Multiple sellers

Limited number of buyers

Unspecified number of sellers

Perfect competition

Companies will have to fight to obtain the cheapest costs possible so that efficiency is reached

Companies can influence prices and put them higher for consumers, so there is inefficiency

Imperfect competition