Market structure II

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Good day steemians, I know you all have various achievement you have set up today, so I fulfill my promose about completing the market structure and today's is based on the imperfect market, I did make a mistake in Market structure I, the valid truth is that imperfect market is moree relating to our daily life, while that of perfect market is theoretical. That been said, what's an imperfect market,

Definition÷ An imperfect market is one that is structured to have either the buyer or the seller influencing the price of the goods or services, because their is lack of information to some extent.
Imperfect market relates to us more due to the way we customers behave, you can never know the exact price of an item and so whatever the seller tells you, you might be forced to buy, same for the seller who might not know what's going on in the market and then they can be cheated also.
We have various types of imperfect market which are;

Duopoly÷ this is a market situation where we have only two buyers and a lot of sellers.

oligopoly÷ this is a market situation that allows few sellers and the lot of buyers

Monopsony÷ this is a market situation that only exists when there is one buyer of a particular products in the market.
We are going to be focusing on a certain type of imperfect market called

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Monopoly

Monopoly can be defined as a market situation where we have only one producer or seller which produce a particular commodity that has no substitute and who has the power to influence the price of the goods or the services he renders to his own favour. Example of a monopolistic market or let me just say and instance that I'll be sharing with you, someone selling bournvita in particular community where there is no other goods related to the one he has, that individual can increase the price knowing they need it, it mostly works on essential goods during scarcity.

Causes of monopoly

Monopoly can be caused in various ways and I will be sharing 3 of this ways with us and that is,

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• Natural cause ÷ A particular city might enjoy monopolistic power due to the excess of a particular natural resources in their land that others doesn't have.

• Patent law ÷ Their is a special law that is given to firms to protect their new invention, from other people entering into the market with a substitute product.

• Advertising ÷ If a firm succeed at their advertising, they might force other competitorsout of the market leaving only them to dictate supply.

How to control monopoly

• By privatizing
• Reduction in tarrifs
• Discouraging merging of firms.

Thanks for reading my blog post.