ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Seller has the right to set the prices as per their choice. It is seen mostly in monopoly which involves single seller who can control the market himself and earn supernatural profits. Hence, monopoly is termed as extreme form of imperfect competition.

Detailed explanation-2: -The most extreme condition of imperfect competition exists when the market for a particular good or service is a monopoly, one in which there is a sole supplier. A supplier that has a monopoly on the provision of a good or service essentially has complete control over prices.

Detailed explanation-3: -Imperfect competition can be found in the following types of market structures: monopolies, oligopolies, monopolistic competition, monopsonies, and oligopsonies. In monopolies, there is only one (dominant) seller. That company offers a product to the market that has no substitute.

Detailed explanation-4: -Firms face different competitive situations. At one extreme-perfect competition-many firms are all trying to sell identical products. At the other extreme-monopoly-only one firm is selling the product, and this firm faces no competition.

Detailed explanation-5: -There are four types of imperfect markets:-Monopoly (only one seller)-Oligopoly (few sellers of goods)-Monopolistic competition (many sellers with highly differentiated product)-Monopsony (only one buyer of a product)