![]() More importantly, this producer exercises immense power in determining the price of goods and services in the market, leaving consumers at its mercy. This situation gives immense power to the firm (monopoly) because it has no competition whatsoever. The last section of this paper provides a summary of our findings.Ī monopoly differs from other types of market structures in the sense that there is only one producer in the market (Boyes & Melvin 2012). In the first section of this report, we highlight the similarities between the two types of imperfect market structures, and in the second section of this paper, we highlight the differences between the two. This paper strives to highlight the differences between the two types of markets by pointing out the main areas of commonality and differences.īy doing so, we will have a better grasp of the two main types of imperfect markets that exist in many parts of the world – monopolies and monopolistic competition. Many people have had trouble understanding a monopoly and a monopolistic competition because they sound the same (Rittenberg 2008). Two of the most common ones are a monopoly and monopolistic competition. Researchers have used these metrics to categorize markets into different types of perfect or imperfect trading structures (Lipsey & Harbury 1992). Some of the most common categorizations for market differentiation include geographical area, time, and legal framework (Dwivedi 2002). Economists use different categories to outline market conditions or market structures that define these situations (Mukherjee, 2002). These activities often lead to the creation of a perfect, or imperfect, competitive environment for buyers and sellers. Similarly, it is common to find customers haggling sellers for low prices and the latter selling their products at different prices, albeit they may be selling the same goods. Consequently, it is common to find people or companies competing for different raw materials and access to markets. However, for most economies, this is not the case because players have different knowledge, expertise, and access to markets in ways that others do not (Dwivedi 2002). ![]() Ideally, the market place should be a space where buyers and sellers freely exchange goods and services. Why is it important? Is there any similarity with perfect competition? Keep reading to learn more! Introduction
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |