Imperfect competition

In economic theory, imperfect competition, is the competitive situation in any market where the conditions necessary for perfect competition are not satisfied.

Forms of imperfect competition include:

· Monopoly, in which there is only one seller of a good.

· Oligopoly, in which there is a small number of sellers.

· Monopolistic competition, in which there are many sellers producing highly differentiated goods.

· Monopsony, in which there is only one buyer of a good.

· Oligopsony, in which there is a small number of buyers.

Summary

Competition in business is the effort of two or more parties acting independently to secure the business of a third party by offering the most favourable terms. Seen as the pillar of capitalism in that it may stimulate innovation, encourage efficiency, or drive down prices, competition is touted as the foundation upon which capitalism is justified. According to microeconomic theory, no system of resource allocation is more efficient than pure competition. Competition, according to the theory, causes commercial firms to develop new products, services, and technologies. This gives consumers greater selection and better products. The greater selection typically causes lower prices for the products compared to what the price would be if there was no competition (monopoly) or little competition (oligopoly).

However, competition may also lead to wasted (duplicated) effort and to increased costs (and prices) in some circumstances. Similarly, the psychological effects of competition may result in harm to those involved.

TELEWORKING

Teleworkers are people who work for companies, but not in companies. That is to say, they do company work at home, usually on computers.

Teleworkers communicate with their supervisors by telephone or fax. They usually transfer information from their own computer to the office computer by electronic means. Some companies also give video phones to their home workers so they can see colleagues when they speak to them.

Teleworking is becoming popular in Ukraine. There are many reasons for this increase. The biggest advantage for companies is that teleworking reduces their running costs. Fewer employees at work means less office space. Also, computers are now quicker and easier to use, and the price has fallen sharply. For a company which needs more manpower, one of the cheapest solutions can be to train employees in computer skills and to give them a personal computer to use at home.

But before you apply for a job as a teleworker, you should ask yourself if it is really the best situation for you. Bill Farrar, who works for a big paper recycling company, hasn't enjoyed his last three months at home. 'I often fall asleep at the computer because I don't have anybody to talk to,' he says. 'So, at lunchtimes, I often go to the nearest bar – which is just at the end of my road – and then the afternoon is gone!' Next week, he's starting a new job in a company where there are five people in one small office. 'I can't wait!' he says.

Current trends

Teleworkers need not necessarily work from the home. A more recent extension of teleworking is distributed work. Distributed work entails the conduct of organizational tasks in places that extends beyond the confines of traditional offices. It can refer to organizational arrangements that permit or require workers to perform work more effectively at any appropriate locations, such as their homes and customers' sites – through the application of information and communication technology. An example is financial planners who meet clients during lunchtime with access to various financial planning tools and offerings on their mobile computers, or publishing executives who recommend and place orders for the latest book offerings to libraries and university professors, among others.

Summary

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