The Concept of Improper Competition in Business

[Jasz]

Imperfect competition is the opposite of perfect competition. In a market with imperfect competition, there are several firms, each with its own market share, that have some control over the prices they charge and the quantities they produce. A firm's demand curve is downward-sloping because if it lowers its prices to entice customers away from competitors, it will lose money on every sale — but it may make up for this loss by selling more units at the lower price.

There are two main types of imperfect competition: monopolies and oligopolies. Most industries fall somewhere in between perfect and imperfect competition; they are either monopolistically competitive or oligopolistic.

Monopolistic Competition

Monopolistic competition is when there are many firms selling similar products but each firm has some control over their pricing decisions due to differences in brand identity or quality. As a result, each firm faces a downward-sloping demand curve rather than an upward-sloping one as in perfect competition.

The key characteristics of monopolistic competition include:

A large number of sellers who sell differentiated goods (goods that cannot be easily substituted for others). For example, there may be several car manufacturers but each manufacturer has its own unique brand image and reputation; therefore, customers will only buy a preferred brand.

 

[Holicent]

Imperfect competition is a market structure in which the barriers to entry are low, there are many firms in the market and each firm sells a differentiated product. In these conditions, firms have some power to influence price, but they do not have complete control of prices. In imperfectly competitive markets, a few firms may dominate the market, but there are still significant numbers of rival firms competing with one another. The degree of competition can vary from highly competitive to monopolistic competition. Imperfectly competitive markets are often referred to as oligopolistic or monopolistic competition.

Firms in imperfectly competitive markets have some control over price, but they cannot charge the maximum price that would maximize profits because of competition from other firms in the industry. In an oligopoly, where there are few sellers, it is difficult for individual companies to increase their prices without losing customers. However, if all sellers choose to increase their prices at the same time then this will lead to higher profits for all sellers in that industry.

 

[sincerem]

Everyone got their own concept of business. I know their is imperfect kind of competition, competition that isn't healthy, that's what it means by imperfect competition. Some business owners might deal on same product but their prices differs, and their brand image differs from the other but generally speaking, the product they deal on is the same. Their is nothing anyone can do to stop such kind of unhealthy condition, one just want to use such kind of unhealthy competition to drag customers from the others and become the standout business owner. So, it is left for the customers to decide which of the product to choose, it depends on the customers choice, and price evaluation. I know customers look cheaper products, and most of them aren't quality kind of products, quality comes with higher price.

 

[Mika]

Businesses are run in three different ways, one, monopoly, two, duopoly, and three, oligipoly. These three businesses have different ways to handle the competition. A monopoly means only one company controls the entire market. Government is the best example of how a single entity can create a monopoly. The government introduces a law that creates monopoly, it will never allow other businesses to work in certain sectors and will exercise a monopoly. Sometimes the entire market is controlled by two companies. These companies work in a way that no new companies will appear in the market, if there are any other new companies, they will work in a way that these new companies will shut down (due to unfavorable conditions created by duopoly), or they will buy these new companies. Oligopoly means a handful of companies control the market. They kill the competition by eating all small fishes, all then while exercising absolute control of the market

 

[King bell]

There is a lot of debate surrounding the concept of improper competition in business. Some people believe that it is a necessary evil, while others feel that it is an unfair practices that should be banned. However, there is no clear consensus on the matter.

Improper competition can be defined as any type of activity that gives one business an unfair advantage over another. This can include things like false advertising, price gouging, and even Rumors.

There are a few different schools of thought when it comes to improper competition. Some people believe that it is a necessary evil, and that it is the only way to keep businesses honest. Others believe that improper competition is an unfair practice that should be banned.

There is no clear consensus on the matter, and it is likely that the debate will continue for some time. However, it is important to be aware of the concept of improper competition, as it can have a significant impact on businesses.