SlideShare a Scribd company logo
Name: Yashu Sharma
Roll no : 75
Class: B.B.A
College: I.P (P.G) College,
Campus 2 Bulandshahr
Presentation Topic:
Difference betweenperfect and
imperfect competition
PERFECT COMPETITION
DEFINITION :
Perfect competition describes a market structure
where competition is at its greatest possible level.To
make it more clear, a market which exhibits the
following characteristics in its structure is said to
show perfect competition:
FEATURES OF PERFECT
COMPETITION
 1. Large number of buyers and sellers
2. Homogenous product is produced by every firm
3. Free entry and exit of firms
4. Zero advertising cost
5. Consumers have perfect knowledge about the
market and are well aware of any changes in the
market. Consumers indulge in rational decision
making.
6. All the factors of production, viz. labour, capital,
etc, have perfect mobility in the market and are not
hindered by any market factors or market forces.
7. No government intervention
8. No transportation costs
9. Each firm earns normal profits and no firms can
earn super-normal profits.
10. Every firm is a price taker. It takes the price as
decided by the forces of demand and supply. No
firm can influence the price of the product.
IMPERFECT COMPETITION
 DEFINITION :
Imperfect competition is a competitive 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.
FEATURES OF IMPERFECT
COMPETITION
 Imperfect competition refers to any economic market
that does not meet the rigorous assumptions of a
hypothetical perfectly competitive market.
 In this environment, companies sell different products
and services, set their own individual prices, fight for
market share, and are often protected by barriers to
entry and exit.
 Imperfect competition is common and can be found in
the following types of market structures: monopolies,
oligopolies, monopolistic competition.
 Economists generally agree that real-world markets
rarely meet the assumptions of perfect competition, but
disagree as to how much of a substantial difference this
makes for market outcomes.

PERFECT COMPETITION V/S
IMPERFECT COMPETITION
PERFECT COMPETITION
 When the condition is not met, it
is considered imperfect
competition.
 The markets we have in real life
are all imperfect.
 While in the case of imperfect
competition, there can be few to
many players.
IMPERFECT COMPETITIUON
 In a competitive market where there
are many buyers and sellers, the
sellers sell identical products to the
buyers, then it is known as perfect
competition.
 Perfect competition is theoretical; it is
impossible to find a perfectly
competitive market. Perfect
competition is usually used as a
standard; it has no real-life example.
However, there are inferences the
market players may get from the
conditions of perfectly competitive
markets.
 In the case of perfect competition,
there are always many players in the
market.
PERFECT COMPETITION
 While the sellers in the case of an
imperfectly competitive market sell
non-identical products.This means
that sellers in the imperfectly
competitive market choose their own
specialties according to their
knowledge and choice.
 In imperfectly competitive markets,
the barriers to entry not only exist but
may also be very high so that no new
participant may easily enter the
market.
 In the case of imperfectly competitive
markets, the sellers can decide the
prices so they are price makers.
IMPERFECT COMPETITION
 In a perfectly competitive market, the
sellers sell identical products.
 There are no barriers to entry and exit
in the perfectly competitive market
which is not true in the case of non-
competitive markets.
 In the case of a perfectly competitive
market, the sellers cannot decide the
price of the products.The prices are
set by market forces. So, the sellers
are price takers in competitive
markets.
CONCLUSION:
All markets in the world are imperfect and as we know there are many
instances in which no condition of perfect competition is obeyed by
market participants.The real markets run in the profit motive and the
players in it are interested in making the maximum profit possible.
Therefore, they do not obey the conditions of perfect competition.
However, perfect competition is a good theoretical condition that may
be taken as a reference to make the real markets as justified as
possible. By following the conditions of perfect competition, the
markets may be made to conform to the best possible norms. However,
in day-to-day life, no company is interested in following the conditions
of perfect competition.
Thankyou ❣️

More Related Content

What's hot

The marginal productivity theory of distribution
The marginal productivity theory of distribution The marginal productivity theory of distribution
The marginal productivity theory of distribution
Prabha Panth
 
The law of equi marginal utility
The law of equi marginal utilityThe law of equi marginal utility
The law of equi marginal utility
subinjazbaat
 
Keynes's psychological law of consumption
Keynes's psychological law of consumptionKeynes's psychological law of consumption
Keynes's psychological law of consumption
AbhishekSharma2611
 
‘PRICE DETERMINATION UNDER PERFECT COMPETITION IN SHORT RUN’
‘PRICE DETERMINATION UNDER PERFECT COMPETITION IN SHORT RUN’‘PRICE DETERMINATION UNDER PERFECT COMPETITION IN SHORT RUN’
‘PRICE DETERMINATION UNDER PERFECT COMPETITION IN SHORT RUN’
Hiba shaikh & Varda shaikh
 
Price spread and marketing efficiency
Price spread and marketing efficiencyPrice spread and marketing efficiency
Price spread and marketing efficiency
Sakthivel R
 
Lecture 01 Introduction to Production Economics
Lecture 01   Introduction to Production EconomicsLecture 01   Introduction to Production Economics
Lecture 01 Introduction to Production Economics
B SWAMINATHAN
 
Price determination under perfect competition
Price determination under perfect competitionPrice determination under perfect competition
Price determination under perfect competition
Jithin Thomas
 
Returns to scale
Returns to scaleReturns to scale
Returns to scale
Yashika Parekh
 
Marketing efficiency, Market margin and Marketing cost
Marketing efficiency, Market margin and Marketing costMarketing efficiency, Market margin and Marketing cost
Marketing efficiency, Market margin and Marketing cost
Dr Sathaiah Manimuthu
 
Interdependence of agriculture and industry
Interdependence of agriculture and industryInterdependence of agriculture and industry
Interdependence of agriculture and industry
girishpoojary1
 
Cobb Douglas Production Function
Cobb Douglas Production FunctionCobb Douglas Production Function
Cobb Douglas Production Function
SwethaShree13
 
Price Determination
Price DeterminationPrice Determination
Price Determination
adititripathi21
 
Unit 2
Unit 2Unit 2
cobweb theory in Agriculture Economics
cobweb theory in  Agriculture  Economicscobweb theory in  Agriculture  Economics
cobweb theory in Agriculture Economics
wenaka krishanthi
 
Revealed preference theory
Revealed preference theoryRevealed preference theory
Revealed preference theory
The Young Indian Economists
 
Law of Returns
Law of ReturnsLaw of Returns
Law of Returns
Lokesh Parihar
 
Cob-Web model 11-3-15.pptx
Cob-Web model 11-3-15.pptxCob-Web model 11-3-15.pptx
Cob-Web model 11-3-15.pptx
SudhakarReddy630686
 
Law of constant returns
Law of constant returnsLaw of constant returns
Law of constant returns
Shakeel Ahmed
 
Iso quants
Iso quantsIso quants
Iso quants
Bony Yamin
 
COBB DOUGLAS PRODUCTION FUNCTION THEORY
COBB DOUGLAS PRODUCTION FUNCTION THEORYCOBB DOUGLAS PRODUCTION FUNCTION THEORY
COBB DOUGLAS PRODUCTION FUNCTION THEORY
Gourav Dholwal
 

What's hot (20)

The marginal productivity theory of distribution
The marginal productivity theory of distribution The marginal productivity theory of distribution
The marginal productivity theory of distribution
 
The law of equi marginal utility
The law of equi marginal utilityThe law of equi marginal utility
The law of equi marginal utility
 
Keynes's psychological law of consumption
Keynes's psychological law of consumptionKeynes's psychological law of consumption
Keynes's psychological law of consumption
 
‘PRICE DETERMINATION UNDER PERFECT COMPETITION IN SHORT RUN’
‘PRICE DETERMINATION UNDER PERFECT COMPETITION IN SHORT RUN’‘PRICE DETERMINATION UNDER PERFECT COMPETITION IN SHORT RUN’
‘PRICE DETERMINATION UNDER PERFECT COMPETITION IN SHORT RUN’
 
Price spread and marketing efficiency
Price spread and marketing efficiencyPrice spread and marketing efficiency
Price spread and marketing efficiency
 
Lecture 01 Introduction to Production Economics
Lecture 01   Introduction to Production EconomicsLecture 01   Introduction to Production Economics
Lecture 01 Introduction to Production Economics
 
Price determination under perfect competition
Price determination under perfect competitionPrice determination under perfect competition
Price determination under perfect competition
 
Returns to scale
Returns to scaleReturns to scale
Returns to scale
 
Marketing efficiency, Market margin and Marketing cost
Marketing efficiency, Market margin and Marketing costMarketing efficiency, Market margin and Marketing cost
Marketing efficiency, Market margin and Marketing cost
 
Interdependence of agriculture and industry
Interdependence of agriculture and industryInterdependence of agriculture and industry
Interdependence of agriculture and industry
 
Cobb Douglas Production Function
Cobb Douglas Production FunctionCobb Douglas Production Function
Cobb Douglas Production Function
 
Price Determination
Price DeterminationPrice Determination
Price Determination
 
Unit 2
Unit 2Unit 2
Unit 2
 
cobweb theory in Agriculture Economics
cobweb theory in  Agriculture  Economicscobweb theory in  Agriculture  Economics
cobweb theory in Agriculture Economics
 
Revealed preference theory
Revealed preference theoryRevealed preference theory
Revealed preference theory
 
Law of Returns
Law of ReturnsLaw of Returns
Law of Returns
 
Cob-Web model 11-3-15.pptx
Cob-Web model 11-3-15.pptxCob-Web model 11-3-15.pptx
Cob-Web model 11-3-15.pptx
 
Law of constant returns
Law of constant returnsLaw of constant returns
Law of constant returns
 
Iso quants
Iso quantsIso quants
Iso quants
 
COBB DOUGLAS PRODUCTION FUNCTION THEORY
COBB DOUGLAS PRODUCTION FUNCTION THEORYCOBB DOUGLAS PRODUCTION FUNCTION THEORY
COBB DOUGLAS PRODUCTION FUNCTION THEORY
 

Similar to YASHU SHARMA PERFECT COMPETITION AND IMPERFECT COMPETITION.pptx

ME U9.pdf
ME U9.pdfME U9.pdf
Perfect competition
Perfect competitionPerfect competition
Perfect competition
NCDB
 
Marketstructure -eco
Marketstructure -ecoMarketstructure -eco
Marketstructure -eco
Saikishore Padhi
 
Business Economics Unit 4
Business Economics Unit 4Business Economics Unit 4
Business Economics Unit 4
Amit Sarkar
 
318 economics eng_lesson21
318 economics eng_lesson21318 economics eng_lesson21
318 economics eng_lesson21
GUDAGUDA
 
Market-and-Pricing-Strategies.pdf
Market-and-Pricing-Strategies.pdfMarket-and-Pricing-Strategies.pdf
Market-and-Pricing-Strategies.pdf
Peter Banda
 
Theories of market stracture 2
Theories of market stracture 2Theories of market stracture 2
Theories of market stracture 2
Patrick Kathata
 
PERFECT COMPETITION MARKET PPT.pptx
PERFECT COMPETITION MARKET PPT.pptxPERFECT COMPETITION MARKET PPT.pptx
PERFECT COMPETITION MARKET PPT.pptx
Dr. SUNANDA KALLEPALLY
 
Theories of market stracture
Theories of market stractureTheories of market stracture
Theories of market stracture
Martin Otundo
 
Price and types of market
Price and types of marketPrice and types of market
Price and types of market
NEHAS360313
 
monopoly and monopolistic market
monopoly and monopolistic marketmonopoly and monopolistic market
monopoly and monopolistic market
Shashank Pal
 
Structure of market
Structure of marketStructure of market
Structure of market
Structure of marketStructure of market
Business-Ethics-Pres-8-03112022-101000am.pptx
Business-Ethics-Pres-8-03112022-101000am.pptxBusiness-Ethics-Pres-8-03112022-101000am.pptx
Business-Ethics-Pres-8-03112022-101000am.pptx
AbdulHannan178742
 
market - Types and their details
market - Types and their detailsmarket - Types and their details
market - Types and their details
Karan Saxena
 
Market
MarketMarket
Market
am-it
 
14 Monopolistic competition
14 Monopolistic competition14 Monopolistic competition
14 Monopolistic competition
Shaik Mohammad Imran
 
Market structure
Market structureMarket structure
Market structure
Suleyman Ally
 
11 Types of Markets
11 Types of Markets11 Types of Markets
11 Types of Markets
Shaik Mohammad Imran
 
Types of markets and their characteristics.
Types of markets and their characteristics.Types of markets and their characteristics.
Types of markets and their characteristics.
Binjal Patel
 

Similar to YASHU SHARMA PERFECT COMPETITION AND IMPERFECT COMPETITION.pptx (20)

ME U9.pdf
ME U9.pdfME U9.pdf
ME U9.pdf
 
Perfect competition
Perfect competitionPerfect competition
Perfect competition
 
Marketstructure -eco
Marketstructure -ecoMarketstructure -eco
Marketstructure -eco
 
Business Economics Unit 4
Business Economics Unit 4Business Economics Unit 4
Business Economics Unit 4
 
318 economics eng_lesson21
318 economics eng_lesson21318 economics eng_lesson21
318 economics eng_lesson21
 
Market-and-Pricing-Strategies.pdf
Market-and-Pricing-Strategies.pdfMarket-and-Pricing-Strategies.pdf
Market-and-Pricing-Strategies.pdf
 
Theories of market stracture 2
Theories of market stracture 2Theories of market stracture 2
Theories of market stracture 2
 
PERFECT COMPETITION MARKET PPT.pptx
PERFECT COMPETITION MARKET PPT.pptxPERFECT COMPETITION MARKET PPT.pptx
PERFECT COMPETITION MARKET PPT.pptx
 
Theories of market stracture
Theories of market stractureTheories of market stracture
Theories of market stracture
 
Price and types of market
Price and types of marketPrice and types of market
Price and types of market
 
monopoly and monopolistic market
monopoly and monopolistic marketmonopoly and monopolistic market
monopoly and monopolistic market
 
Structure of market
Structure of marketStructure of market
Structure of market
 
Structure of market
Structure of marketStructure of market
Structure of market
 
Business-Ethics-Pres-8-03112022-101000am.pptx
Business-Ethics-Pres-8-03112022-101000am.pptxBusiness-Ethics-Pres-8-03112022-101000am.pptx
Business-Ethics-Pres-8-03112022-101000am.pptx
 
market - Types and their details
market - Types and their detailsmarket - Types and their details
market - Types and their details
 
Market
MarketMarket
Market
 
14 Monopolistic competition
14 Monopolistic competition14 Monopolistic competition
14 Monopolistic competition
 
Market structure
Market structureMarket structure
Market structure
 
11 Types of Markets
11 Types of Markets11 Types of Markets
11 Types of Markets
 
Types of markets and their characteristics.
Types of markets and their characteristics.Types of markets and their characteristics.
Types of markets and their characteristics.
 

Recently uploaded

HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...
HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...
HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...
Higher Education Marketing
 
Global Uniform Market Analysis 2024: Market Size & Trends
Global Uniform Market Analysis 2024: Market Size & TrendsGlobal Uniform Market Analysis 2024: Market Size & Trends
Global Uniform Market Analysis 2024: Market Size & Trends
UniformMarket
 
The Future of B2B Audience Targeting with LinkedIn
The Future of B2B Audience Targeting with LinkedInThe Future of B2B Audience Targeting with LinkedIn
The Future of B2B Audience Targeting with LinkedIn
Tajul Islam
 
6 Tips For Restaurant Social Media Marketing.pdf
6 Tips For Restaurant Social Media Marketing.pdf6 Tips For Restaurant Social Media Marketing.pdf
6 Tips For Restaurant Social Media Marketing.pdf
Metric Connect
 
Onboarding ABM - Insights from Checkpoint & Jfrog
Onboarding ABM - Insights from Checkpoint & JfrogOnboarding ABM - Insights from Checkpoint & Jfrog
Onboarding ABM - Insights from Checkpoint & Jfrog
Avishai Sharon
 
Visakhapatnam Call Girls 👉 9352988975 👈 Full Satisfied Service Unlimited Shot...
Visakhapatnam Call Girls 👉 9352988975 👈 Full Satisfied Service Unlimited Shot...Visakhapatnam Call Girls 👉 9352988975 👈 Full Satisfied Service Unlimited Shot...
Visakhapatnam Call Girls 👉 9352988975 👈 Full Satisfied Service Unlimited Shot...
shivangiji206
 
3 Best “Add to Calendar” Link Generator Tools (2024)
3 Best  “Add to Calendar”  Link Generator Tools (2024)3 Best  “Add to Calendar”  Link Generator Tools (2024)
3 Best “Add to Calendar” Link Generator Tools (2024)
Y
 
Lyrics Video Document for artist Kevin Aguirre
Lyrics Video Document for artist Kevin AguirreLyrics Video Document for artist Kevin Aguirre
Lyrics Video Document for artist Kevin Aguirre
rawlensproductionsco
 
Advertising and Promotion of whisper by Sakthi Sundar
Advertising and Promotion of whisper by Sakthi SundarAdvertising and Promotion of whisper by Sakthi Sundar
Advertising and Promotion of whisper by Sakthi Sundar
sakthisundar2001
 
DTA Promotion - Marketing Specialist Assignment
DTA Promotion - Marketing Specialist AssignmentDTA Promotion - Marketing Specialist Assignment
DTA Promotion - Marketing Specialist Assignment
Amal Agung Cahyadi
 
Facebook Marketing Strategy with SNJ Global Services.pptx
Facebook Marketing Strategy with SNJ Global Services.pptxFacebook Marketing Strategy with SNJ Global Services.pptx
Facebook Marketing Strategy with SNJ Global Services.pptx
sarfrazkhanm47
 
The Power of Digital Marketing in the Modern Age.pdf
The Power of Digital Marketing in the Modern Age.pdfThe Power of Digital Marketing in the Modern Age.pdf
The Power of Digital Marketing in the Modern Age.pdf
David Thomson
 
一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理
一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理
一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理
10h6bbc4
 
Universal Merit Awards Sri Lanka Marketing by Franchise Batao.pdf
Universal Merit Awards Sri Lanka Marketing by Franchise Batao.pdfUniversal Merit Awards Sri Lanka Marketing by Franchise Batao.pdf
Universal Merit Awards Sri Lanka Marketing by Franchise Batao.pdf
FranchiseBatao
 
一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理
一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理
一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理
uvnuc
 
Why bridging the gap between PR and SEO is the only way forward for PR Profes...
Why bridging the gap between PR and SEO is the only way forward for PR Profes...Why bridging the gap between PR and SEO is the only way forward for PR Profes...
Why bridging the gap between PR and SEO is the only way forward for PR Profes...
Isa Lavs
 
Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...
Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...
Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...
rosankumar564363
 
Top 10 AI Trends to Watch in 2024 with Intelisync
Top 10 AI Trends to Watch in 2024 with IntelisyncTop 10 AI Trends to Watch in 2024 with Intelisync
Top 10 AI Trends to Watch in 2024 with Intelisync
nehapardhi711
 
How to Generate Add to Calendar Link using Cal.et
How to Generate Add to Calendar Link using Cal.etHow to Generate Add to Calendar Link using Cal.et
How to Generate Add to Calendar Link using Cal.et
Y
 
Bad Bunny Merch.pptxKJDSVKBDSVKBDSVKDDSKDKJDBK
Bad Bunny Merch.pptxKJDSVKBDSVKBDSVKDDSKDKJDBKBad Bunny Merch.pptxKJDSVKBDSVKBDSVKDDSKDKJDBK
Bad Bunny Merch.pptxKJDSVKBDSVKBDSVKDDSKDKJDBK
rawlensproductionsco
 

Recently uploaded (20)

HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...
HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...
HEM Webinar - Navigating the Future - Social Media Trends for 2024 in Educati...
 
Global Uniform Market Analysis 2024: Market Size & Trends
Global Uniform Market Analysis 2024: Market Size & TrendsGlobal Uniform Market Analysis 2024: Market Size & Trends
Global Uniform Market Analysis 2024: Market Size & Trends
 
The Future of B2B Audience Targeting with LinkedIn
The Future of B2B Audience Targeting with LinkedInThe Future of B2B Audience Targeting with LinkedIn
The Future of B2B Audience Targeting with LinkedIn
 
6 Tips For Restaurant Social Media Marketing.pdf
6 Tips For Restaurant Social Media Marketing.pdf6 Tips For Restaurant Social Media Marketing.pdf
6 Tips For Restaurant Social Media Marketing.pdf
 
Onboarding ABM - Insights from Checkpoint & Jfrog
Onboarding ABM - Insights from Checkpoint & JfrogOnboarding ABM - Insights from Checkpoint & Jfrog
Onboarding ABM - Insights from Checkpoint & Jfrog
 
Visakhapatnam Call Girls 👉 9352988975 👈 Full Satisfied Service Unlimited Shot...
Visakhapatnam Call Girls 👉 9352988975 👈 Full Satisfied Service Unlimited Shot...Visakhapatnam Call Girls 👉 9352988975 👈 Full Satisfied Service Unlimited Shot...
Visakhapatnam Call Girls 👉 9352988975 👈 Full Satisfied Service Unlimited Shot...
 
3 Best “Add to Calendar” Link Generator Tools (2024)
3 Best  “Add to Calendar”  Link Generator Tools (2024)3 Best  “Add to Calendar”  Link Generator Tools (2024)
3 Best “Add to Calendar” Link Generator Tools (2024)
 
Lyrics Video Document for artist Kevin Aguirre
Lyrics Video Document for artist Kevin AguirreLyrics Video Document for artist Kevin Aguirre
Lyrics Video Document for artist Kevin Aguirre
 
Advertising and Promotion of whisper by Sakthi Sundar
Advertising and Promotion of whisper by Sakthi SundarAdvertising and Promotion of whisper by Sakthi Sundar
Advertising and Promotion of whisper by Sakthi Sundar
 
DTA Promotion - Marketing Specialist Assignment
DTA Promotion - Marketing Specialist AssignmentDTA Promotion - Marketing Specialist Assignment
DTA Promotion - Marketing Specialist Assignment
 
Facebook Marketing Strategy with SNJ Global Services.pptx
Facebook Marketing Strategy with SNJ Global Services.pptxFacebook Marketing Strategy with SNJ Global Services.pptx
Facebook Marketing Strategy with SNJ Global Services.pptx
 
The Power of Digital Marketing in the Modern Age.pdf
The Power of Digital Marketing in the Modern Age.pdfThe Power of Digital Marketing in the Modern Age.pdf
The Power of Digital Marketing in the Modern Age.pdf
 
一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理
一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理
一比一原版澳洲纽卡斯尔大学毕业证(UoN学位证)如何办理
 
Universal Merit Awards Sri Lanka Marketing by Franchise Batao.pdf
Universal Merit Awards Sri Lanka Marketing by Franchise Batao.pdfUniversal Merit Awards Sri Lanka Marketing by Franchise Batao.pdf
Universal Merit Awards Sri Lanka Marketing by Franchise Batao.pdf
 
一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理
一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理
一比一原版(uts毕业证书)悉尼科技大学毕业证如何办理
 
Why bridging the gap between PR and SEO is the only way forward for PR Profes...
Why bridging the gap between PR and SEO is the only way forward for PR Profes...Why bridging the gap between PR and SEO is the only way forward for PR Profes...
Why bridging the gap between PR and SEO is the only way forward for PR Profes...
 
Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...
Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...
Call Girls in Hyderabad (Telangana) call me [🔝7737669865🔝] Escort In Hyderaba...
 
Top 10 AI Trends to Watch in 2024 with Intelisync
Top 10 AI Trends to Watch in 2024 with IntelisyncTop 10 AI Trends to Watch in 2024 with Intelisync
Top 10 AI Trends to Watch in 2024 with Intelisync
 
How to Generate Add to Calendar Link using Cal.et
How to Generate Add to Calendar Link using Cal.etHow to Generate Add to Calendar Link using Cal.et
How to Generate Add to Calendar Link using Cal.et
 
Bad Bunny Merch.pptxKJDSVKBDSVKBDSVKDDSKDKJDBK
Bad Bunny Merch.pptxKJDSVKBDSVKBDSVKDDSKDKJDBKBad Bunny Merch.pptxKJDSVKBDSVKBDSVKDDSKDKJDBK
Bad Bunny Merch.pptxKJDSVKBDSVKBDSVKDDSKDKJDBK
 

YASHU SHARMA PERFECT COMPETITION AND IMPERFECT COMPETITION.pptx

  • 1. Name: Yashu Sharma Roll no : 75 Class: B.B.A College: I.P (P.G) College, Campus 2 Bulandshahr
  • 3. PERFECT COMPETITION DEFINITION : Perfect competition describes a market structure where competition is at its greatest possible level.To make it more clear, a market which exhibits the following characteristics in its structure is said to show perfect competition:
  • 4. FEATURES OF PERFECT COMPETITION  1. Large number of buyers and sellers 2. Homogenous product is produced by every firm 3. Free entry and exit of firms 4. Zero advertising cost 5. Consumers have perfect knowledge about the market and are well aware of any changes in the market. Consumers indulge in rational decision making.
  • 5. 6. All the factors of production, viz. labour, capital, etc, have perfect mobility in the market and are not hindered by any market factors or market forces. 7. No government intervention 8. No transportation costs 9. Each firm earns normal profits and no firms can earn super-normal profits. 10. Every firm is a price taker. It takes the price as decided by the forces of demand and supply. No firm can influence the price of the product.
  • 6. IMPERFECT COMPETITION  DEFINITION : Imperfect competition is a competitive 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.
  • 7. FEATURES OF IMPERFECT COMPETITION  Imperfect competition refers to any economic market that does not meet the rigorous assumptions of a hypothetical perfectly competitive market.  In this environment, companies sell different products and services, set their own individual prices, fight for market share, and are often protected by barriers to entry and exit.  Imperfect competition is common and can be found in the following types of market structures: monopolies, oligopolies, monopolistic competition.  Economists generally agree that real-world markets rarely meet the assumptions of perfect competition, but disagree as to how much of a substantial difference this makes for market outcomes. 
  • 8. PERFECT COMPETITION V/S IMPERFECT COMPETITION PERFECT COMPETITION  When the condition is not met, it is considered imperfect competition.  The markets we have in real life are all imperfect.  While in the case of imperfect competition, there can be few to many players. IMPERFECT COMPETITIUON  In a competitive market where there are many buyers and sellers, the sellers sell identical products to the buyers, then it is known as perfect competition.  Perfect competition is theoretical; it is impossible to find a perfectly competitive market. Perfect competition is usually used as a standard; it has no real-life example. However, there are inferences the market players may get from the conditions of perfectly competitive markets.  In the case of perfect competition, there are always many players in the market.
  • 9. PERFECT COMPETITION  While the sellers in the case of an imperfectly competitive market sell non-identical products.This means that sellers in the imperfectly competitive market choose their own specialties according to their knowledge and choice.  In imperfectly competitive markets, the barriers to entry not only exist but may also be very high so that no new participant may easily enter the market.  In the case of imperfectly competitive markets, the sellers can decide the prices so they are price makers. IMPERFECT COMPETITION  In a perfectly competitive market, the sellers sell identical products.  There are no barriers to entry and exit in the perfectly competitive market which is not true in the case of non- competitive markets.  In the case of a perfectly competitive market, the sellers cannot decide the price of the products.The prices are set by market forces. So, the sellers are price takers in competitive markets.
  • 10. CONCLUSION: All markets in the world are imperfect and as we know there are many instances in which no condition of perfect competition is obeyed by market participants.The real markets run in the profit motive and the players in it are interested in making the maximum profit possible. Therefore, they do not obey the conditions of perfect competition. However, perfect competition is a good theoretical condition that may be taken as a reference to make the real markets as justified as possible. By following the conditions of perfect competition, the markets may be made to conform to the best possible norms. However, in day-to-day life, no company is interested in following the conditions of perfect competition.