Forms of Market — Economics STD 12 Commerce / Arts — Question

1. Perfect competition is a type of market where there are large number of firms producing homogeneous product.
2. Each seller is price taker.
3. Each individual firm controls only a small portion of the total supply.
4. Each seller and buyer has perfect knowledge about the market situation.
5. There are no types in perfect competitive market.

Imperfect Competition:

1. Imperfect competition is a type of market where the product produced by the sellers may be similar or differentiated.
2. Each seller is price maker.
3. Each seller may control more or less portion of the total supply.
4. Each seller and buyer may not have perfect knowledge about the market situation.
5. Examples of imperfect market are monopoly, oligopoly, monopolistic competition, etc.