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Distinguish between perfect and imperfect market. explain why the existence of imperfect markets create a need for financial intermediareies?

Sagot :

In financial matters, explicitly broad harmony hypothesis, a perfect market, otherwise called an atomistic market and An imperfect market alludes to any financial market that doesn't satisfy the thorough guidelines of the speculative perfectly or absolutely cutthroat market.

What is the difference between perfect and imperfect market?

A Perfect market is described by perfect contest, market harmony, and a limitless number of purchasers and dealers.

In an imperfect market, individual purchasers and venders can impact costs and creation, there is no complete story of data about items and costs, and there are high hindrances to passage or exit in the market.

Imperfect markets don't fulfill the thorough guidelines of a speculative perfectly or simply cutthroat market. Imperfect markets are portrayed by having rivalry for market share, high boundaries to section and exit, various items and administrations, and few purchasers and merchants.

Therefore Perfect markets are hypothetical and can't exist in reality; all genuine markets are imperfect markets.

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