Competition Markets

Imperfect Competition

This occurs when the conditions of perfect competition are not met and in this case the companies take control of the market and seek that their products make a difference.

Characteristics of imperfect competition

Advertising, in addition to being persuasive, tends to be informative, because a good group of companies are in the market and the knowledge of the buyer is somewhat limited.

Their main objective is to reach the price they have proposed, regardless of the real supply and demand.

Las empresas participantes ejercen su propio control sobre el precio, en mayor o menor medida, de los productos que ofrecen al mercado.

Allows restricted access to products.

Imperfect Competition Market Types

Oligopolio

wireless service providers

Oil companies

The railways

Monopsonio

heavy weapons industry

Monopolio

Telmex

Facebook

Microsoft

Oligopsonio

Automotive industry with car seat

Perfect Competition

It is a situation where companies have little power in the market to manipulate prices and this means that there are non-existent profits due to competition and in this case the price is determined by supply and demand.

Characteristics of the perfect market

Homogeneous products

free attendance

equality condition

No entry and exit barriers

not marketing

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Table 1 guest -guest -

Example of perfectly competitive markets

Agriculture

foreign exchange market

online shopping