Imperfect Competition

Imperfect Competition

A market featuring a few competitors but with sufficiently limited competition that sellers still have some market power (either because there are a few competitors or because competitors sell somewhat different products)

Market Power

The extent to which a seller can charge a higher price without losing many sales to competing businesses

Differentiation

Slight differences in value to consumers

Barries to Entry

The legal, technological, or market forces that discourage or prevent potential competitors from entering the market

Monopoly

When there is only one seller in the market

Monopolistic Competition

A market with many small businesses competing, each selling differentiated products

Oligopoly

A market with only a handful or large sellers

Natural Monopoly

A market in which it is cheapest for a single business to service the market