Q4. Perfect competition is considered a better choice for consumers because they get quality products on cheaper prices. Compare other market structures with perfect competition? Similarities and difference? Why imperfect competition is necessarily a bad choice for consumers. Explain with special reference to Monopoly market structure?
Perfect competition is a market structure where goods are identical.
consumers have perfect knowledge about the goods;hence sellers cannot charge them high price.
The products quality is surely of high quality,because identical products are made and consumers get those products at cheaper rates because of the above mentioned reasons.
There are other market structures such as monopoly,monopolistic competition,oligopoly etc.
Among these markets monopoly is the most different from perfect competition.Because monopoly has single seller whereas perfect competition has many sellers.
There are barriers to entry in monopoly whereas there are no barriers to entry in perfect competition.
Oligopoly has few sellers whereas perfect competition has many sellers.
Monopolistic competition and perfect competition are similar in a way that they have many sellers.
All the market structures mentioned above have many buyers is the similarity between them.
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