What is perfect and imperfect competition?

Perfect competition is a market structure where there are many buyers and sellers, each producing identical products and no single buyer or seller can set the price of the product. Examples include agricultural commodities such as wheat and corn.

Imperfect competition is a market structure where there are either few buyers and sellers or a single buyer or seller, which means that they can set the price of the product. Examples include luxury cars and designer clothing.

Monopoly is a market structure where there is only one seller and no close substitutes. Examples include utilities such as electricity and water.

Oligopoly is a market structure where there are few sellers and each seller has some control over the price. Examples include the airline industry and oil industry.

Monopolistic competition is a market structure where there are many sellers who produce slightly differentiated products. Examples include consumer goods and retail stores.

Monopsony is a market structure where there is only one buyer and many sellers. Examples include labor markets for skilled workers.

Duopoly is a market structure where there are two sellers and each seller has some control over the price. Examples include the search engine industry.

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