Imperfect competition exists in a competitive market, but where some of its features or sectors are not truly completely competitive. Imperfect competition is where there might be many producers and sellers, however, they are selling dissimilar goods and services. In an imperfect market, the ones who call the shots are often in a position to abuse their power.Imagine an economy that has 1,000 different companies – on paper it appears to have a very competitive market. However, it would soon look less like a perfect and more like an imperfect market if among those one thousand companies you discovered that there was just one electricity producer and seller, one company that owned all the filling stations, two landline telephone companies, two providers of mobile phone services, one bus company, one airline, one water company, and two distributors of milk, etc.It would still be classed as a competitive market, especially if none of the companies were state-owned, and many sectors did have several competitors and rivals. However, as the name suggest, it would be imperfect in nature – overall, there would be imperfect competition.