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What shifts curves perfect competition11/16/2023 ![]() ![]() Each firm produces the same product as the other which means that Firm A cannot afford to charge high because firm B is producing the same product. Whereas, perfectly competitive markets has Product homogeneity as one of its core assumptions. Monopolists being the single seller of a product, enables them to have monopoly power because first it doesn’t lets anyone else product the product through barriers to entry and secondly, Uniqueness make it charge more from it customers. ![]() It has barriers to entry in the form is Patents, licences or copyrights etc that halts other companies to enter in the same market for profits.Īre you interested in creating an Academic Blog just like ? Check my detailed step-by-step tutorials of creating your own blog in 2018. Monopolist, the complete opposite is an imperfect market that produces a unique product and is the sole seller of that particular product. As a consequence buyers can also shift from one supplier to another and suppliers too can easily enter or leave the market in case if they are making no profit. In other words, it means that there are no special costs associated with entering or exiting the market. One of the important assumptions of Perfect competition is Free entry and Exit. Imperfect Market – Monopolist – Single Seller and many buyers Free Entry or Barriers Perfectly Competitive Market – Perfect competition – Many sellers and many buyers These are the distinguishing features of both the markets. One of the very important Perfect and Imperfect markets namely Perfect competition and Monopoly has always been studied in every foundation course of Economics.
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