{"id":49244,"date":"2022-02-17T15:21:09","date_gmt":"2022-02-17T14:21:09","guid":{"rendered":"https:\/\/moovago.com\/non-categorise\/pure-and-perfect-competition-and-imperfect-competition\/"},"modified":"2025-11-26T11:55:18","modified_gmt":"2025-11-26T10:55:18","slug":"pure-and-perfect-competition-and-imperfect-competition","status":"publish","type":"post","link":"https:\/\/moovago.com\/en\/prospecting-2\/pure-and-perfect-competition-and-imperfect-competition\/","title":{"rendered":"Pure and perfect competition and imperfect competition"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"49244\" class=\"elementor elementor-49244 elementor-10155\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-c3b7b63 e-flex e-con-boxed e-con e-parent\" data-id=\"c3b7b63\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-86c00a1 elementor-widget elementor-widget-text-editor\" data-id=\"86c00a1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Pure and perfect competition<\/strong> is a theory according to which the<strong>equilibrium of<\/strong> product<strong>prices<\/strong> and<strong>quantities<\/strong> is rationally defined as a function of several conditions.<\/p><p><strong>Imperfect competition<\/strong> exists when a market fails to meet one of the 5 conditions of pure and perfect competition.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c31d9e9 elementor-widget elementor-widget-heading\" data-id=\"c31d9e9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Pure and perfect competition<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0e43eca elementor-widget elementor-widget-heading\" data-id=\"0e43eca\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What is pure and perfect competition?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c031008 elementor-widget elementor-widget-text-editor\" data-id=\"c031008\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Pure and perfect competition, or PPC, is a theory developed in the 19th century. Pure and perfect competition is an ideal type of market structure in which all producers and consumers have complete and symmetrical information, with no transaction costs. Product prices are decided rationally.  <\/p><p>In this competitive model, there are no <a href=\"https:\/\/moovago.com\/en\/prospecting-2\/what-is-monopolistic-competition-definition\/\">monopolies<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4bb5d57 elementor-widget elementor-widget-heading\" data-id=\"4bb5d57\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">\nWhat are the 5 conditions of pure and perfect competition?\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1086a98 elementor-widget elementor-widget-heading\" data-id=\"1086a98\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Market atomicity<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4af0858 elementor-widget elementor-widget-text-editor\" data-id=\"4af0858\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Firms, individuals and households are all very small, so they cannot influence market conditions. There are no dominant companies, and there are no agreements between companies to set higher prices and reduce quantities. All buyers are isolated, they do not communicate and cannot force a price reduction, for example.  <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5391a61 elementor-widget elementor-widget-image\" data-id=\"5391a61\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-5-1-300x300.png\" class=\"attachment-medium size-medium wp-image-42474\" alt=\"Market atomicity, pure and perfect competition\" srcset=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-5-1-300x300.png 300w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-5-1-1024x1024.png 1024w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-5-1-150x150.png 150w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-5-1-768x768.png 768w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-5-1.png 1200w\" sizes=\"(max-width: 300px) 100vw, 300px\" title=\"Moovago, application commerciaux, CRM, ERP, PGI, GRC\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b60a215 elementor-widget elementor-widget-heading\" data-id=\"b60a215\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Product consistency<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2045b38 elementor-widget elementor-widget-text-editor\" data-id=\"2045b38\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>All products in the same category are the same. They are identical. This ensures that buyers cannot distinguish between products on the basis of physical attributes, such as size or color, or intangible values, such as brand image. Buyers therefore base their choices solely on product price.   <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-24efd96 elementor-widget elementor-widget-image\" data-id=\"24efd96\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-1-300x300.png\" class=\"attachment-medium size-medium wp-image-42482\" alt=\"Product homogeneity, pure and perfect competition\" srcset=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-1.png 300w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-1-150x150.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" title=\"Moovago, application commerciaux, CRM, ERP, PGI, GRC\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c966f99 elementor-widget elementor-widget-heading\" data-id=\"c966f99\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Market fluidity<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ae089a8 elementor-widget elementor-widget-text-editor\" data-id=\"ae089a8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The market is open to competition. Any company wishing to enter the market can do so easily, and any new buyer wishing to participate in the exchange can do so easily. There are no binding regulations for setting up a new business on the market. The initial investment required to set up a business should be minimal, and exiting the market should be straightforward and not entail any particular expenses.   <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5a3cbe7 elementor-widget elementor-widget-image\" data-id=\"5a3cbe7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-3-1-300x300.png\" class=\"attachment-medium size-medium wp-image-42490\" alt=\"Market fluidity: pure and perfect competition\" srcset=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-3-1.png 300w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-3-1-150x150.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" title=\"Moovago, application commerciaux, CRM, ERP, PGI, GRC\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7101d70 elementor-widget elementor-widget-heading\" data-id=\"7101d70\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Mobility of production factors (labor and capital)\n<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e467dd9 elementor-widget elementor-widget-text-editor\" data-id=\"e467dd9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Workers and capital must be able to move freely and unhindered from one activity to another. If, for example, an industry becomes less profitable, the factors used in it are transferred to the most profitable activity. There are no delays, no costs and no different training.  <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d4ff948 elementor-widget elementor-widget-image\" data-id=\"d4ff948\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-300x300.png\" class=\"attachment-medium size-medium wp-image-42494\" alt=\"Mobility of production factors, pure and perfect competition\" srcset=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading.png 300w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-150x150.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" title=\"Moovago, application commerciaux, CRM, ERP, PGI, GRC\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a07ccf2 elementor-widget elementor-widget-heading\" data-id=\"a07ccf2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Market transparency<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-65db402 elementor-widget elementor-widget-text-editor\" data-id=\"65db402\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>All market participants are aware of all market characteristics. Agents know the quality of products, and the quantities offered and demanded at different prices. Information is direct and free.    <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ca07c81 elementor-widget elementor-widget-image\" data-id=\"ca07c81\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-300x300.png\" class=\"attachment-medium size-medium wp-image-42498\" alt=\"Market transparency, pure and perfect competition\" srcset=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading.png 300w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-150x150.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" title=\"Moovago, application commerciaux, CRM, ERP, PGI, GRC\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c611649 elementor-widget elementor-widget-heading\" data-id=\"c611649\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What are the limits of pure and perfect competition?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7f6b6ce elementor-widget elementor-widget-text-editor\" data-id=\"7f6b6ce\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>In the real world, pure and perfect competition is virtually impossible to achieve.<\/p><p>Each of these conditions is difficult to achieve.<\/p><p><b>Market atomicity:<\/b> Companies and governments have the clout to change and control markets. They influence buyers and product prices. <\/p><p><b>Product homogeneity: <\/b>To have identical products, producers and manufacturers would have to have the same production methods and want to produce the same product. Brands and advertising cannot exist. <\/p><p><b>Market fluidity:<\/b> Excessive barriers to entry and exit, state protectionism and patents. All these factors block market fluidity and the smooth functioning of pure, perfect competition. <\/p><p><b>Mobility of production factors (labor and capital):<\/b> Moving workers takes time and costs money. Between training, changes in habits and the new environment, it is difficult to achieve this condition. <\/p><p><b>Market transparency:<\/b> Information is not necessarily accessible or free. It can be protected by companies and governments. What&#8217;s more, when information is free and accessible, it can be biased by the people who share it.  <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eaaee55 elementor-widget elementor-widget-heading\" data-id=\"eaaee55\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Examples of pure and perfect competition<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3dc8ace elementor-widget elementor-widget-text-editor\" data-id=\"3dc8ace\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Pure perfect competition is a theoretical construct and does not really exist. It is difficult to find real examples of perfect competition. So we&#8217;re going to talk about theoretical conditions.  <\/p><p><u>Example:<\/u><\/p><p>A market brings together many small buyers and sellers of wheat. The wheat isn&#8217;t really different from one seller to another, and only the price is really different. None of the sellers offer packaging, and all wheat is easily purchased. Buyers are all rational, so they&#8217;ll choose the wheat that costs the least.   <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4e8d573 elementor-widget elementor-widget-image\" data-id=\"4e8d573\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-300x300.png\" class=\"attachment-medium size-medium wp-image-42510\" alt=\"Example of pure and perfect competition\" srcset=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading.png 300w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-150x150.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" title=\"Moovago, application commerciaux, CRM, ERP, PGI, GRC\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c092fd3 elementor-widget elementor-widget-heading\" data-id=\"c092fd3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Imperfect competition<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-36f8b0f elementor-widget elementor-widget-heading\" data-id=\"36f8b0f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What is imperfect competition?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-406bfdf elementor-widget elementor-widget-text-editor\" data-id=\"406bfdf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: bolder;\">Imperfect competition<\/span> exists when a market fails to meet one of the 5 conditions of pure and perfect competition.<\/p>\n<p>This means that companies operating in this environment can choose how to differentiate their products, the prices they will offer and the next innovations they want to achieve.<\/p>\n<p>Monopoly and oligopoly arise from imperfectly competitive markets.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-236e37e elementor-widget elementor-widget-heading\" data-id=\"236e37e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Examples of imperfect competition?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6c35b26 elementor-widget elementor-widget-text-editor\" data-id=\"6c35b26\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The smartphone market is a good example of imperfect competition.<\/p><p>All smartphone brands try to differentiate themselves by offering new features or focusing their communication on the specific features of their products.<\/p><p>What&#8217;s more, some countries block the distribution of certain brands of smartphones within their borders, which hampers market fluidity.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a09fdbd elementor-widget elementor-widget-image\" data-id=\"a09fdbd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Add-a-heading-2-1-300x300.png\" class=\"attachment-medium size-medium wp-image-42506\" alt=\"Examples of imperfect competition\" srcset=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Add-a-heading-2-1-300x300.png 300w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Add-a-heading-2-1-1024x1024.png 1024w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Add-a-heading-2-1-150x150.png 150w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Add-a-heading-2-1-768x768.png 768w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Add-a-heading-2-1.png 1200w\" sizes=\"(max-width: 300px) 100vw, 300px\" title=\"Moovago, application commerciaux, CRM, ERP, PGI, GRC\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ce6f03b elementor-widget elementor-widget-heading\" data-id=\"ce6f03b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What are the differences between pure and perfect competition and imperfect competition?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5ca683f elementor-widget elementor-widget-text-editor\" data-id=\"5ca683f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Pure and perfect competition is an idealized market without any defects, in which products are identical and equal. They can only be differentiated by price. What&#8217;s more, all market players have access to all information and act rationally.  <\/p><p>In the case of imperfect competition :<\/p><ul><li>Products tend to work differently and offer unique benefits.<\/li><li>Companies compete for market share.<\/li><li>Barriers to entry are high, and buyers and sellers lack information.<\/li><li>Companies can also use marketing campaigns to increase sales and product margins.<\/li><\/ul><div> <\/div><p>Pure and perfect competition tends to standardize products, preventing innovation. In effect, all products look the same and offer the same functions. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b8ff885 elementor-widget elementor-widget-image\" data-id=\"b8ff885\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"768\" height=\"576\" src=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-9-1-768x576.png\" class=\"attachment-medium_large size-medium_large wp-image-42502\" alt=\"Perfect and imperfect competition\" srcset=\"https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-9-1-768x576.png 768w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-9-1-300x225.png 300w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-9-1-1024x768.png 1024w, https:\/\/moovago.com\/wp-content\/uploads\/2022\/02\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Add-a-heading-9-1.png 1200w\" sizes=\"(max-width: 768px) 100vw, 768px\" title=\"Moovago, application commerciaux, CRM, ERP, PGI, GRC\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-526215d elementor-widget elementor-widget-heading\" data-id=\"526215d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Discover also<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1050e91 elementor-grid-2 elementor-grid-tablet-2 elementor-grid-mobile-1 elementor-posts--thumbnail-top elementor-widget elementor-widget-posts\" data-id=\"1050e91\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;classic_columns&quot;:&quot;2&quot;,&quot;classic_columns_tablet&quot;:&quot;2&quot;,&quot;classic_columns_mobile&quot;:&quot;1&quot;,&quot;classic_row_gap&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:35,&quot;sizes&quot;:[]},&quot;classic_row_gap_widescreen&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;classic_row_gap_laptop&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;classic_row_gap_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;classic_row_gap_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"posts.classic\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-posts-container elementor-posts elementor-posts--skin-classic elementor-grid\" role=\"list\">\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-49260 post type-post status-publish format-standard has-post-thumbnail hentry category-prospecting-2\" role=\"listitem\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/moovago.com\/en\/prospecting-2\/what-is-direct-competition-example-definition-translation\/\" tabindex=\"-1\" >\n\t\t\t<div class=\"elementor-post__thumbnail\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/moovago.com\/wp-content\/uploads\/2021\/11\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-avantages-et-be\u0301ne\u0301fices-dun-CRM-3.png\" class=\"attachment-full size-full wp-image-42199\" alt=\"direct and indirect competition\" title=\"Moovago, application commerciaux, CRM, ERP, PGI, GRC\" srcset=\"https:\/\/moovago.com\/wp-content\/uploads\/2021\/11\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-avantages-et-be\u0301ne\u0301fices-dun-CRM-3.png 1024w, https:\/\/moovago.com\/wp-content\/uploads\/2021\/11\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-avantages-et-be\u0301ne\u0301fices-dun-CRM-3-300x169.png 300w, https:\/\/moovago.com\/wp-content\/uploads\/2021\/11\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-avantages-et-be\u0301ne\u0301fices-dun-CRM-3-768x432.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/div>\n\t\t<\/a>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<p class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/moovago.com\/en\/prospecting-2\/what-is-direct-competition-example-definition-translation\/\" >\n\t\t\t\tWhat is direct competition? Example, definition, translation\t\t\t<\/a>\n\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t<\/article>\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-49183 post type-post status-publish format-standard has-post-thumbnail hentry category-prospecting-2\" role=\"listitem\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/moovago.com\/en\/prospecting-2\/what-is-monopolistic-competition-definition\/\" tabindex=\"-1\" >\n\t\t\t<div class=\"elementor-post__thumbnail\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/moovago.com\/wp-content\/uploads\/2021\/11\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-avantages-et-be\u0301ne\u0301fices-dun-CRM-2.png\" class=\"attachment-full size-full wp-image-42179\" alt=\"monopolistic competition\" title=\"Moovago, application commerciaux, CRM, ERP, PGI, GRC\" srcset=\"https:\/\/moovago.com\/wp-content\/uploads\/2021\/11\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-avantages-et-be\u0301ne\u0301fices-dun-CRM-2.png 1024w, https:\/\/moovago.com\/wp-content\/uploads\/2021\/11\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-avantages-et-be\u0301ne\u0301fices-dun-CRM-2-300x169.png 300w, https:\/\/moovago.com\/wp-content\/uploads\/2021\/11\/Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-Copy-of-avantages-et-be\u0301ne\u0301fices-dun-CRM-2-768x432.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/div>\n\t\t<\/a>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<p class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/moovago.com\/en\/prospecting-2\/what-is-monopolistic-competition-definition\/\" >\n\t\t\t\tWhat is monopolistic competition? Definition\t\t\t<\/a>\n\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t<\/article>\n\t\t\t\t<\/div>\n\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Pure and perfect competition is a theory according to which theequilibrium of productprices andquantities is rationally defined as a function of several conditions. Imperfect competition<\/p>\n","protected":false},"author":2,"featured_media":42470,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[597],"tags":[],"class_list":["post-49244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-prospecting-2"],"_links":{"self":[{"href":"https:\/\/moovago.com\/en\/wp-json\/wp\/v2\/posts\/49244","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moovago.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moovago.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moovago.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/moovago.com\/en\/wp-json\/wp\/v2\/comments?post=49244"}],"version-history":[{"count":1,"href":"https:\/\/moovago.com\/en\/wp-json\/wp\/v2\/posts\/49244\/revisions"}],"predecessor-version":[{"id":49250,"href":"https:\/\/moovago.com\/en\/wp-json\/wp\/v2\/posts\/49244\/revisions\/49250"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moovago.com\/en\/wp-json\/wp\/v2\/media\/42470"}],"wp:attachment":[{"href":"https:\/\/moovago.com\/en\/wp-json\/wp\/v2\/media?parent=49244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moovago.com\/en\/wp-json\/wp\/v2\/categories?post=49244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moovago.com\/en\/wp-json\/wp\/v2\/tags?post=49244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}