Types of competitive markets

Types of competitive markets

1. Perfectly competitive market

   • Perfect competition is the situation in a market where firms lack the power to manipulate price, and there is welfare maximization. This results in an ideal situation of the markets for goods and services, where the interaction of supply and demand determines the price.
     • Lots of buyers and sellers
     • Homogeneous products
       • A homogeneous product is an object that lacks attributes that distinguish it from the rest of the same category.

2. imperfect competition

   • Monopoly
     • The monopoly is a market structure where there is a single supplier of a certain good or service, that is, a single company dominates the entire supply market.
       • Many buyers and a single seller
       • a single product
   • Oligopoly
     • An oligopoly is a market structure in which there are few relevant competitors and each of them has some ability to influence the equilibrium price and quantity.
       • Many buyers and few sellers
       • Differentiated products
   • Monopolistic
     • Monopolistic competition is a type of imperfect competition in which there is a high number of sellers in the market who have a certain power to influence the price of their product.
       • Lots of buyers and sellers
       • Differentiated products

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