Characteristics Of Imperfect Competition

There are many buyers in the industry

Each buyer acts independently and no single individual buyer by their own actions can influence the market price of goods

There are many sellers in the industry

Each seller acts independently but sellers can set their own price influencing the quantity sold

There is freedom of entry and exit from the industry

Firms already in the industry cannot prevent new firms with their own unique product from entering the industry likewise leaving

Each firm tries to maximise profit

Sole goal of each firm is to produce the quantity that will maximise its profits in the short run they aim to minimise costs and produce the quantity where MC=MR

Reasonable knowledge as to profits made by other firms

In the industry everyone has reasonable knowledge as to the profits made by other firms