scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 648
In this topic we will discuss the difference between perfect and imperfect competition and explain how imperfect competition may have affected the growth and development of the telecommunications sector in Malaysia 31 The difference between perfect and imperfect competition It is traditional to divide industries into categories according to the degree of competition that exists between the firms within the industry There are four such categories At one extreme is perfect competition where there are very many firms competing Sloman J 2003 Each firm is so small relative to the whole industry that it has no power to influence price It is a price taker At the other extreme is monopoly where there is just one firm in the industry and hence on competition from within the industry In the middle come monopolistic competition which involves quite a lot of firms competing and where is freedom for new firms to enter the industry and oligopoly which involves only a few firms and where entry of new firms is restricted Imperfect competition means the collective name for monopolistic competition and oligopoly Table 31 shows the differences between the four categories Sloman J 2003 p 149 Table 31 feature of the four market structures Sloman J 2003 p 149 Type of marketNumber of firmsFreedom of entryNature of productImplication for demand curve for firm Perfect competitionVery manyUnrestrictedHomogeneousHorizontal The firm is a price taker Monopolistic competitionManyseveralUnrestrictedDifferentiatedDownward sloping but relatively elastic The firm has some control over price OligopolyFewRestrictedUndifferentiated or differentiatedDownward sloping relatively inelastic but depends on reactions of rivals to a price change MonopolyOneRestricted or complete blockedUniqueDownward sloping more inelastic than oligopoly the firm has considerable control over price 32 Which is more suited for the growth and development of the telecommunications sector in Malaysia Perfect competition may be less desirable than other imperfect competition market Even though firms under perfect competition may seem to have an incentive to
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA