what is the difference between perfect competition and imperfect competition 
while perfect competition is an idealized market structure in which equal and identical products are sold imperfect competition can be found in monopolies and real life examples for instance imperfect competition involves companies competing for market share high barriers to entry and buyers lacking complete information on a product or service unlike perfect competition however this creates the incentive to innovate and produce better products in addition to increased profit margins due to the influence of supply and demand the bottom lineperfect competition describes an imaginary market condition where all consumers have access to the same products and information in this type of economy all firms must offer the lowest price possible or risk being undercut by their competitors although this is only a theoretical model perfect competition is useful for demonstrating how economic actors behave in a free market 