StellarIntroduction to Imperfectly Competitive Markets
In economics, imperfect competition describes markets where the assumptions of perfect competition—many firms, identical products, and no barriers to entry—do not hold. These markets feature fewer firms, differentiated products, and barriers to entry, leading to inefficiencies such as deadweight loss. Understanding the dynamics of imperfectly competitive markets is critical for analyzing how these deviations from perfect competition affect prices, output, and overall efficiency.