Perfect Imperfect

1. Many buyers and sellers of the same
economic products
2. Homogenous, No differentiation
3. Numerous buyers and sellers are
essential to the market
4. Must be knowledgeable
5. No barriers, friendly for small businesses
6. No influence over prices
7. An example of agricultural products
8. Government isn’t involved
1. Number of buyers and sellers vary
according to forms
2. Products are differentiated
3. Only a few players in the market
4. Must be knowledgeable
5. There are barriers in the market
6. Few players have access to controlling
the price
7. Monopoly, Monopsony, Oligopoly,
Monopolistic Competition
8. Government is involved for regulation
purposes

Monopolistic Competition Oligopoly Monopsony Monopoly

 Differentiated but are  Differentiated and  Differentiated  Products are

highly substitutable are not but the inferior with not
 Large number of substitutable preference much competition
sellers  Small number of depends on  One seller
 Large number of sellers; could be a the desire of  Large number of
buyers lot of sellers but the buyer buyers
 Free Entry only a few  Large number  Difficult to Entry
 Free Exit dominate of sellers  Difficult to Exit
 Small amount of  Large number of  One buyer  Prices are
control over prices buyers  Difficult to controlled by a
 Government is  Difficult to Entry Entry singular firm
involved in price  Difficult to Exit  Difficult to Exit  Government is
control  Prices depend on  Price wars to limitedly involved
domination; the gain the favor
more dominant a of the buyer
company is, the “Race to the
more control they Bottom”
have on the prices  Government is
 Government is limitedly
limitedly involved involved