Karnataka 2nd PUC Economics Notes Chapter 6 Imperfect Competitive Markets
Imperfect market is a market where we see either less competition or no competition. The forms of imperfectly competitive market are Monopoly, Duopoly, Oligopoly and Monopolistic.
| Monopoly | Competitive Firm |
| Existence of single seller. | Existence of a large number of sellers. |
| No close substitutes. | Existence of close substitutes. |
| Control over market price. | No control over market price. |
| Super-normal profit. | Normal profit. |
Selling costs: Selling costs are those expenses of the producer incurred on marketing of goods produced. The main objective of selling cost is to attach particular consumer to particular brand.
The demand curve of monopolistic competitive firm is more elastic than monopoly market because of the presence of close substitutes in monopolistic competition. In monopoly market there are no close substitutes.
Duopoly: Duopoly is the market situation where there are only two sellers or firms in the market. Example, Private firm and public firm.