What is Market Competition? Explanation of types.

Competition is the rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market share growth.

Perfect Competition is a situation in which:

• All of the seller is selling products of same industry.
• Large number of buyer and seller.
• Any company can enter and exit easily.
• Most of the business firm can maintain their quality.
• It is very easy to obtain information because there are many buyer and many seller. 
• Price difference among the products is not too much.
• Free mobility of factor of production.

Imperfect competition is a type of market situation in which:

•  We see some but not all features of competitive markets.
•  Sometimes most of the features of competitive markets is not seen.

there are some type of imperfect competition.

• Monopolistic competition is a situation in which: 

There are many firms with slightly different products compete. Examples of industries with market structures similar to monopolistic competition include restaurants, cereal, clothing, shoes, and service industries in large cities. Let me make it easier. Restaurants present food but the difference is not all of them provide same types of product. Burger King and Pizza Hat  both are restaurant and they compete with each other but the former is popular for their burger and the latter is popular for their pizza.

• A monopoly is a market structure in which:

A market or industry is dominated by a single supplier of a particular good or service. For this feature, the supplier will supply the product according to their will.

• A monopsony is a market system in which:

There is only one buyer and many sellers. Monopoly system works as the pioneer of monopsony market system. For example: X is the only company in an area. It doesn't have any competitor. The employees are selling their services to only X company. They don't have any other choice. 

• An oligopsony is a market where:

There are a few buyers and many sellers. Oligopoly system works as the pioneer of oligopsony market system. For example: X,Y and Z are the only companies in an area. Their employees are selling their services to these companies. They will have to choose the companies they will serve from these three companies.

• An oligopoly market is a market system in which:

There are few supplier and many buyers. Duopoly is a special case of an oligopoly, which consists of  only two firms. For example: X, Y, and Z are the only companies in an area. People have to buy from them. 

End.