Market analysis-nature of market
The four characteristics of imperfect competition are :
( a ) Large number of buyer and seller .
( b ) Product differentiation .
( C ) Expenditure on advertisement and
other selling cost .
( d ) Non - price competition .
A perfectly competitive market has the following characteristics:
- There are many buyers and sellers in the market.
- Each company makes a similar product.
- Buyers and sellers have access to perfect information about price.
- There are no transaction costs.
- There are no barriers to entry into or exit from the market.
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