Kashmir University 2nd Semester Economics study material check Here
Imperfect competition
Definition: Imperfect competition is a market situation where there
are many sellers, but they are selling heterogeneous (dissimilar) goods
as opposed to the perfect competitive market scenario. As the name
suggests, competitive markets that are imperfect in nature.
Description: Imperfect competition is the real world competition.
Today some of the industries and sellers follow it to earn surplus
profits. In this market scenario, the seller enjoys the luxury of
influencing the price in order to earn more profits.
If a seller is selling a non -identical good in the market, then he can
raise the prices and earn profits. High profits attract other sellers to
enter the market and sellers, who are incurring losses, can very easily
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