PERFECT COMPETITION:
There are
large number of buyers and seller who compete among themselves, and their
number is so large that no buyer and seller is in a position to influence the
demand or the supply in the market. Every firm is free to enter and go in this
market. We can also say that the goods produced by difference firms are
identical in nature.
FOR EXAMPLE:
Agriculture
is one of the major example of a perfect competition.
Like if we
go to a vegetable market and enquire about the price of the potatoes from the
shopkeeper. Then he says potatoes are for Rs. 15/kg. in the same way we enquire
with so many shopkeepers and then we get to know the same answer.
MONOPOLOSTIC COMPETITON:
It is a type
of imperfect competition such that many producers sell products that are
differentiated from one another. In this the firms takes the price which is
charged by the rivals as given and ignore the impact of its own price on the
price of other firm.
FOR EXAMPLE:
Restaurants,
cereal, clothing, shoes etc are the exampls
Like most of
the people have habit of using luxury goods, that can be cloths, shoes or any
other needs. Even my few friends have the habit of wearing branded cloths and
shoes. They just wait to see the difference in every brand although the
products will be similar but the price some were varies.
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