chapter  7
36 Pages

Other Market Structures: Imperfect Competition

The buyers and sellers of products in our modern day economy come to­ gether in markets that differ in important ways. The effects on prices, profits, consumer well-being-in short, the normative results of market activity-depend on the degree of competition in the market. The vigor of competitive rivalry is related to certain identifiable characteristics of the market. Economists have carefully categorized the different market ar­ rangements that exist in terms of their degree of competitive behavior, which ranges from perfect competition to pure monopoly.