what is perfect competition, monopoly and monopolistic competition

what is perfect competition, monopoly and monopolistic competition

1.perfect competition 

Features

  • Large no. of buyers and sellers
  • Homogeneous product
  • Free entry and exit
  • Perfect information about the prevailing price

2. monopoly

Monopoly is derived from Greek words, MONOS  (single), POLIEN (seller).Thus Monopoly is characterized by sole  producer selling a distinct product for which there are no close substitutes and there are strong barriers to entry.

Origin of Monopoly

  • Control over Strategic Raw Material
  • Small size of the market.
  • Patents , copy rights
  • Public utilities
  • Monoplistic Combinations
  • Fiscal Monopoly

3. Monopolistic Competetion

Refers to a market structure in which there are many sellers selling similar but differentiated products and there is existence of free entry and exit of firms

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