Close
Menu

Imperfect Competition Market: Definition, Characteristics, Types and Examples

Imperfect Competition Market: Definition, Characteristics, Types and Examples – What is meant by imperfect competition market?, On this occasion About the knowledge.co.id will discuss it and of course other things that also cover it. Let's look at the discussion together in the article below to better understand it.

Imperfect Competition Market: Definition, Characteristics, Types and Examples

The market is a place that is generally used for economic activities such as buying and selling transactions involving traders and buyers. These transaction activities can generally occur if there are negotiations and agreements that are felt to benefit both parties involved in the transaction activities.

The market is divided into 2 forms, namely Perfect Competition Market and Imperfect Competition Market. However, what we will discuss on this occasion is the Imperfect Competition Market and the things that are in it.

Imperfect competition market or Imperfect Competition Market is one form of which market in it there is only one or a few traders who control the price and also the market, while the buyers a huge amount.

instagram viewer

In other words, the Imperfect Competition Market is a form of market that is not optimally organized. Therefore, this market is said to be imperfect because there are deficiencies that can cause injustice in the market.

Characteristics of Imperfect Competition Markets

Below are the characteristics of an imperfect market, including:

  • It has a very small number of traders, but there are many buyers.
  • Merchants have the right to determine the price of their merchandise.
  • If there are new traders who enter the market, it will be difficult to compete with other traders.
  • Goods that are traded are products that are specially made so that it is difficult to find a replacement.
  • Products traded in the Imperfect Competition Market are generally homogeneous.

Types of Imperfect Competition Markets

In general, the Imperfect Competition Market has five types of markets. The following is a description of the five types of markets, which include:

  • Monopoly Market

Monopoly market is a condition or situation that occurs in the market, which is the only market has only one trader, so that trader is in control and determines the price of goods sold.

Characteristics of the Monopoly Market, namely:

    • Only has one trader who is in power in the industry or market.
    • There is only one type of item, so there is no substitute for that item.
    • New traders will find it very difficult to enter the market area.
    • Traders are responsible for determining the price of the goods they sell.
    • Merchants do not need promotional activities for their merchandise.

  • Oligopoly Market

An oligopoly market is a type of market in which there are only a few sellers or producers who own shares or are the largest masters of the market.

There are two important factors that influence the formation of an oligopoly market, namely large-scale efficiency and management complexity. An example of the Oligopoly Market is the motorcycle industry, the cigarette industry, the mineral water industry, and many more.

Characteristics of an Oligopoly Market, namely:

    • Creating two kinds of products that are homogeneous and also heterogeneous.
    • Really need promotional activities for the goods being traded.
    • The number of existences from manufacturers is very few.
    • Competition in the market is not only about price, but service, advertising and promotion can also be competition.
    • For new parties it will be very difficult to enter the market area.
    • Prices that have been determined are generally not easy to change or can be said to be very stable.

  • Monopolistic Market

Monopolistic market is a form of market that appears only when there are many producers in the market. There are differences between the goods produced by manufacturers, be it in terms of brand, packaging or something else.

Monopolistic Markets are often said to tend to be the same as the types of perfect competition markets, it's just that what differentiates them is that the products being traded are heterogeneous in nature.

Characteristics of a Monopolistic Market, namely:

    • There are quite a number of traders or producers.
    • Products traded are heterogeneous in nature.
    • Advertising activities or promoting goods are very active.
    • It is very easy for producers to enter and enter the market freely or without conditions.
    • The existence of the producers can affect the price in the market.

  • Monopsony Market

A monopsony market is a condition or condition of a market in which there are many sellers but only one buyer.

In this market, it is the consumer who is the supreme ruler, so that the buyer will feel more benefited. The price of goods traded must be in accordance with what is desired by consumers (buyers).

Even so, traders try as much as possible to get big profits.

The characteristics of a Monopsony Market, namely:

    • Consumers serve as the central party in power in determining prices.
    • Goods traded only focus on raw materials.
    • Only has one customer or buyer.
Imperfect Competition Market: Definition, Characteristics, Types and Examples

  • Oligopsony Market

An oligopsony market is a type of market in which there are more traders than consumers.

Even so, the prices of goods or services traded in this oligopsony market tend to be more stable. The price of the products traded in the oligopsy market is determined by the buyers (consumers).

Characteristics of an Oligopsony Market, namely:

    • There are only a few consumers in an oligopsony market.
    • Prices of goods traded in the market tend to be more stable and less volatile.
    • Products or goods sold are semi-finished materials.

Thus the review from About the knowledge.co.id about Imperfect Competition Market: Definition, Characteristics, Types and Examples, hopefully can add to your insight and knowledge. Thank you for visiting and don't forget to read other articles.

List of contents

Recommendation:

  • Conductors Are: Characteristics, Functions, Terms and… Conductors Are: Characteristics, Functions, Terms and Examples - What is a Conductor?, On On this occasion, Seputarknowledge.co.id will discuss it, including functions and of course other things as well covered it. Let us…
  • Negotiation Text: Definition, Purpose, Structure, Rules, Characteristics,… Negotiation Text: Definition, Purpose, Structure, Rules, Characteristics, How to Write - In this discussion we will explain about negotiating text. Which includes the understanding of the negotiating text, the purpose of the negotiation, structure, rules, characteristics...
  • Computer Hardware: How it Works, Types, Examples and… Computer Hardware: How it Works, Types, Examples and Functions - In today's computerized era, we are definitely familiar with computers and their devices. However, some may not know...
  • Indonesia's Geographical Conditions: Location, Land Condition, System… Geographical Conditions of Indonesia: Location, Land Conditions, Drainage Systems, Weather, Population Conditions and Flora Distribution Fauna - How is the Geographical Condition in Indonesia? Condition…
  • √ Economics: Definition and its Division (Complete) Economics: Understanding and its Division (Complete) - On this occasion, Around Knowledge will discuss Economics. Which in this discussion explains the meaning of economics and its division ...
  • Factors Inhibiting Social Mobility: Definition, Factors… Inhibiting Factors of Social Mobility: Definition, Driving Factors and Explanations - What is the meaning of social mobility and What are the inhibiting factors? On this occasion, about the knowledge of Knowledge.co.id will discuss it, including nutritional content and naturally…
  • Types of Official Letters, Characteristics, Functions and Examples Types of Official Letters, Characteristics, Functions and Examples - What are the types of official letters? On this occasion, Seputarknowledge.co.id will discuss it and of course about other things as well covered it. Let…
  • Capitalist Economic System: Definition, Characteristics, Advantages,… Capitalist Economic System: Definition, Characteristics, Strengths, Weaknesses and Countries Adhering to it - What is meant with the Capitalist economic system?, On this occasion, Se regarding the knowledge.co.id will discuss it and of course about matter…
  • Sickness Certificate: Definition, Structure, Benefits,… Sickness Certificate: Definition, Structure, Benefits, Legal Responsibilities and Examples - What's in What do you mean by Sickness Certificate? On this occasion, Seputarknowledge.co.id will discuss about Letter…
  • Types of Drones, Terms, Parts, Basic Principles And… Types of Drones, Terms, Parts, Basic Principles and Movement - What are the types of drones and function?, On this occasion Seputarknowledge.co.id will discuss it and of course other things Also…
  • Accounting: Definition, History, Purpose, Functions, Benefits and… Accounting: Definition, History, Purpose, Functions, Benefits and Types of Fields - What is meant by the term Accounting? On this occasion, Seputarknowledge.co.id will discuss accounting and related matters covers it.…
  • √ Definition of Foreign Currency, Purpose, Function, Type, Actor,… Definition of Foreign Exchange, Purpose, Function, Type, Actor, Strengths & Weaknesses - In this discussion, you will learn about Foreign Exchange. Which includes the meaning, purpose, function, type, actors, advantages and disadvantages...
  • Intersections Are: Forms, Connections, Impacts, Characteristics, Examples… Intersections are: forms, connections, impacts, characteristics, examples and their relationship to consolidation - what is in what do you mean by intersection? On this occasion, Seputardinding.co.id will discuss it and of course other formulas…
  • Economic Motives: Definition, Examples, Purpose, and Kinds Economic Motives: Definition, Examples, Purpose, Principles, and Kinds - Any desire or action that carried out by humans in an effort to meet their needs is always driven by causes or reasons certain.…
  • Ijarah Law: Definition, Legal Basis, Requirements, Pillars, Types of… Ijarah Law: Definition, Legal Basis, Terms, Pillars, Types and Terms - What is Ijarah law and basically?, On this occasion Seputarknowledge.co.id will discuss it and of course about it other…
  • √ Definition of Sharia Economics, Characteristics, Purpose, Benefits,… Definition of Islamic Economics, Characteristics, Purpose, Benefits, Principles, Legal Basis and Forms of Cooperation - In this discussion we will explain Islamic Economics. Which includes the notion of Islamic economics, characteristics, economic objectives...
  • Bacteria and Their Role: Types, Beneficial and… Bacteria and Their Role: Types, Beneficial and Harmful Roles - What are bacteria? Bacteria are single-celled or unicellular organisms, prokaryotes or prokaryotes, microscopic or very small in size. Bacteria contribute...
  • √ Definition of Economic Growth, Characteristics, Indicators, Methods… Definition of Economic Growth, Characteristics, Indicators, Measuring Methods, Complete Factors - In this discussion, you will learn about economic growth. Which includes the definition, characteristics, indicators, how to measure, the factors that become…
  • Social Arithmetic: Overall Value, Theories and Formulas and… Social Arithmetic: Overall Value, Theory and Formulas and Example Problems - Have you understood what is meant by social arithmetic? discuss…
  • Conciliation: Understanding According to Experts, Characteristics, Purpose,… Conciliation: Understanding According to Experts, Characteristics, Purpose, Benefits, Advantages and Differences with Mediation - What is it what is conciliation and what is its purpose? On this occasion, Se regarding the knowledge.co.id will discuss it and of course about matters...
  • Examples of Trading Companies: Definition, Characteristics, Types,… Examples of Trading Companies: Definition, Characteristics, Types, and Characteristics - In this discussion we will explain about trading companies. Which includes the definition of a trading company, the type of trading company, the characteristics of the company…
  • √ Definition of Economic Principles, Purpose, Characteristics, Types and… Definition of Economic Principles, Purpose, Characteristics, Types and Examples - In this discussion we will explain about Economic Principles. Which includes the understanding of economic principles, the purpose of economic principles, the characteristics of economic principles, the types of…
  • Environmental Speech: Definition, Purpose, Characteristics and… Environmental Speech: Definition, Purpose, Characteristics and Examples - How is the text of environmental speech structured? what's good and right?, On this occasion, Seputarknowledge.co.id will discuss it and of course things Which…
  • News Text: Definition, Characteristics, Elements, Structure, Terms,… News Text: Definition, Characteristics, Elements, Structure, Terms, Language Rules, Writing Guidelines and Examples - What is meant by News Text? On this occasion, Seputarknowledge.co.id will discuss about...
  • The Political Life of the Majapahit Empire: Early History and… The Political Life of the Majapahit Kingdom: Early History and Legacy - How was the Political Life of the Kingdom Majapahit? On this occasion, Seputarknowledge.co.id will discuss the Majapahit Kingdom and other things covered it. Let's look at the discussion together...
  • √ Understanding Management Economics and its Basic Principles… Understanding Management Economics and Its Basic Principles (Complete) - In general, the understanding of management economics is both science and art planning, organizing, directing, and controlling the efforts of members of the organization and the use of resources Power…
  • 2 Dimensional Art Works: Definition, Techniques, Elements, Media… 2 Dimensional Art Works: Definition, Techniques, Elements, Media and Examples - What is meant by 2 Dimensional Art Works?
  • Economic Actors: Definition, Economic Actors and… Economic Actors: Definition, Economic Actors and Their Role - What is meant by Actors Economy? On this occasion, Seputarknowledge.co.id will discuss what economic actors are and things Which…
  • Example of Cultural Arts Questions for Class 10 (X) SMA/MA/SMK Semester 1… Examples of Class 10 (X) Cultural Arts Questions for SMA/MA/SMK Semesters 1 and 2 (2019 and 2020) - On this occasion, Seputarknowledge.co.id will discuss Multiple Choice Class 10 Cultural Arts Questions and Essay…
  • Types of Color Types: Definition, Characters and Explanations Types of Color Types: Definition, Characters and Explanations - What are the types of colors and their explanations? On this occasion, Seputarknowledge.co.id will discuss it and of course the things that also cover it.…