Imperfect competition
Importance of imperfect competition

Imperfect competition is inherent in capitalist economies. Firms are incentivised by profit, and hence undertake competitive strategies which reap the greatest revenue, by setting P > MC, at the cost of macroeconomic market efficiency. In the most extreme case of a monopoly, producers overcharge for their good or service, and underproduce. Thus, imperfectly competitive pricing strategies impact consumer preferences and purchases, business operation and revenue, and economic policy.
change_case:english_capital, oulipo:avoid_letter[o]