as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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describe the differences between perfect and imperfect competition.
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perfect competition is a market structure where there are many small buyers and sellers, all of whom have perfect knowledge and no influence on the price of the product. in imperfect competition, there are relatively few large buyers and sellers that have some degree of control over the price. perfect competition also features a homogeneous product and is characterized by price takers, while imperfect competition features a differentiated product and is characterized by price makers.
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