Imperfect Competition

imperfect competition occurs when perfect competition is being violated. In this competition
companies have different strategies selling their products, services to fight for market share,
and being protected by barriers to entry and exit. Imperfect competition is widespread and can
take different forms, such as monopolies, oligopolies, monopolistic competition, monopsonies,
and oligopsonies. These are markets where firms have some degree of market power, product
differentiation, price discrimination, or entry and exit barriers. It also creates opportunities for
firms to earn more profit than in a perfectly competitive market, where they only earn normal
profit. However, imperfect competition also leads to allocative and productive inefficiency, as
well as potential welfare losses for consumers and society.

reference:
Liberto, D. (2021, August 30). Imperfect competition definition. Investopedia.

https://www.investopedia.com/terms/i/imperfect_competition.asp