What is Imperfect Competition?
- Imperfect competition is the case of a market with a small number of sellers so that sellers have market power.
How Do I Remember It?
- Think of imperfect competition as “not quite perfect.” It’s like a market where there are some elements of competition, but sellers have enough market power to affect prices.
Real World Example
- For example, the market for smartphones is considered to be imperfectly competitive. While there are several major manufacturers like Apple, Samsung, and Motorola, they have enough market power to differentiate their products and influence prices. This is in contrast to a perfectly competitive market where no single seller can affect prices.
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By: Ryan Aquino
