Imperfect Competition
Definition
Imperfect competition refers to a market structure where there are multiple sellers and buyers, but they have some degree of control over the price and quantity of goods or services. This means that firms can differentiate their products or manipulate prices to gain an advantage.
Related terms
Monopolistic Competition: In monopolistic competition, there are many sellers offering differentiated products, but there is still some level of competition among them.
Oligopoly: Oligopoly refers to a market structure where only a few large firms dominate the industry and have significant control over prices and output.
Monopoly: A monopoly occurs when there is only one seller in the market, giving them complete control over the price and quantity of goods or services.
"Imperfect Competition" appears in:
Study guides (1)
AP Microeconomics - 4.1 Introduction to Imperfectly Competitive Markets
Additional resources (1)
AP Microeconomics - Unit 4 Overview: Imperfect Competition
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Resources
Cram Mode
AP Score Calculators
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.