Difference between Perfect Competition, Imperfect Competition, and Monopoly

This article will help you to learn about the difference between perfect competition, imperfect competition, and monopoly.

Difference between Perfect Competition, Imperfect Competition, and Monopoly

Perfect Competition:

1. Large number of buyers and sellers.

2. Perfect Competition among sellers.

3. Homogeneous Product.

4. Lack of control over factors of production.

5. Absence of Price Control

6. Perfect knowledge of the market.

7. One Price or the same price prevails everywhere.

Imperfect Competition:

1. Small number of buyers and sellers.

2. Imperfect Competition among sellers.

3. Product differentiation.

4. Artificial restrictions on the factors of production.

5. Presence of Price Control.

6. Ignorance of Purchases.

7. Price differentiation.

Monopoly:

1. One and only one seller.

2. Lack of Competition.

3. No product differentiation.

4. Artificial restrictions on the factors of production.

5. Full Control on Price.

6. Imperfect Knowledge of the market.

7. Price Discrimination.