Markets generally fall into two broad categories: perfect and imperfect competition. Perfect competition exists when companies have minimal power to influence prices, leading to prices determined purely by supply and demand.
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.
Imperfect Competition Market Types
Oligopsonio
Automotive industry with car seat
Monopolio
Microsoft
Facebook
Telmex
Monopsonio
heavy weapons industry
Oligopolio
The railways
Oil companies
wireless service providers
Characteristics of imperfect competition
Allows restricted access to products.
Las empresas participantes ejercen su propio control sobre el precio, en mayor o menor medida, de los productos que ofrecen al mercado.
Their main objective is to reach the price they have proposed, regardless of the real supply and demand.
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.
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.
