In this market the firms can have some control over the price of their offerings. It is possible for firm to exercise their marketing power & can play on the price without their demand being affected.
There are four types of Imperfect markets:
• Monopoly- This is a market situation where there is only one seller & has full control over the market. The consumers don’t have any other option but to adjust to the policies being adopted by the firm.
• Oligopoly- This is a market situation in which there are few sellers of a product & consumer don’t have too much of options. There is potential collusion happening between the firms. Each firm is large enough to influence the market prices.
• Monopolistic competition- Monopolistic competition refers to the market in which there are many sellers selling highly differentiated products.
• Monopsony- This a type of market in which only one buyer is present but there are many sellers.