Perfect Competition Market:- It is a market structure in which all firm's sell an identical products.even the market share has no influence on the price and they can even enter or exit the market without the cost price.
For example:- During my puja holidays I went to unit 1 market for buying some fruits and vegetables and then I went to a vendor shop and asked the price of the Apple so he said 1kg costs Rs.200 but then I thought I could get in less price from the other vendor shop but it did not happen when I went to another shopkeeper he even didn't change the price as the price of the Apple was fixed in that market so it is an example of perfect competition market.
Monopolistic Competition:- In this market , there are several markets and the freedom of entry and exit is unrestricted, even in these markets there are many producers who sell products that are differentiated from one another.
For example:- Restaurants, Beauty salons and Hotels are few examples of monopolistic competition markets.
No comments:
Post a Comment