Discuss the forms of competition that exist in a market and the key components of competition.
There are four forms of competition: pure competition, monopolistic competition, oligopoly, and monopoly. The key components of competition include the likelihood of new competitors, the power of buyers and suppliers, and the presence of competitors and possible substitutes. While large companies are often used as examples of marketplace competitors, there are 27.5 million small businesses in the United States, which have a significant impact on the economy.