What are the conditions for a perfectly competitive market?
A perfectly competitive market is a market in which economic forces operate unimpeded.

For a market to be perfectly competitive, six conditions must be met:
1. Both buyers and sellers are price takers – a price taker is a firm or individual who takes the price determined by market supply and demand as given
2. The number of firms is large – any one firm’s output compared to the market output is imperceptible and what one firm does has no influence on other firms
3. There are no barriers to entry – barriers to entry are social, political, or economic impediments that prevent firms from entering a market
4. Firms’ products are identical – this requirement means that each firm’s output is indistinguishable from any other firm’s output
5. There is complete information – all consumers know all about the market such as prices, products, and available technology
6. Selling firms are profit-maximizing entrepreneurial firms – firms must seek maximum profit and only profit

What are the conditions for a monopolistic market?
• Monopoly is a market structure in which one firm makes up the entire market
• Barriers to entry into the market prevent competition, they can be; Legal, Sociological, Natural, Technological
• There are no close substitutes for the monopolist’s product

What are the conditions for a monopolistic competitive market?
A monopolistically competitive market is a market in which there are many firms selling differentiated products and few barriers to entry

Four distinguishing characteristics:
• Many sellers that do not take into account rivals’ reactions
• Product differentiation where the goods that are sold aren’t homogenous
• Multiple dimensions of competition make it harder to analyze a specific industry, but these methods of competition follow the same two decision