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Muzafer Sherif found that when groups of people viewed a stationary dot of light in a dark room, the people perceived the dot to move in a phenomenon called the autokinetic effect. When comparing their experiences in small groups after viewing the dot, groups came to slightly different conclusions regarding how much the dot had moved and provided some insight into how are formed.
Imperfect Competition
Imperfect competition describes a market structure where the conditions necessary for perfect competition are not met, leading to firms having some control over market prices.
Monopoly
A market structure characterized by a single seller who has exclusive control over a product or service, potentially leading to higher prices and reduced quality.
Monopolistically Competitive
Describes a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.
Many Sellers
A market condition in which there are numerous providers of a good or service, contributing to competitive pricing and variety for consumers.
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