Competition

This week in economics we learned about the different forms of competition and business structures. I found the forms of competition pretty interesting. Perfect competition is the most competitive form. It has the most sellers, most freedom to enter and exit a market, the least amount of control of price, the most informed buyers, and standardized products. However, I don't believe that it is the best form of competition for most markets. I believe that most markets should have monopolistic competition. Monopolistic competition is similar to perfect competition because both have a lot of sellers, a lot of freedom to enter and exit a market, and little control of the price. Monopolistic competition however, has differentiated products. This means that producers make their products different from others so they can still make a profit. In perfect competition there is the same product offered by all and this means that the price will go down. The price will eventually drop so much that producers would not be making enough profit. Monopolistic competition still offers a lot of freedom to the buyers but it also has more benefit for the sellers as well.  The other forms of competition  are oligopoly and monopoly. They are less competitive and there are less sellers and the sellers have more control over the price. Competition is important in everyday economics because there are many of the forms present in the economy. All forms of competition have their benefits and disadvantages. The right type of competition has to be selected for the right market.