What are the types of competition?

There are four types of competition:

1) Perfect Competition - This is a theoretical market structure where there are a large number of small firms, each selling identical products. There is free entry and exit, and perfect information.

2) Monopolistic Competition - This is a market structure where there are many firms selling similar but not identical products. Firms have some power to set prices, but there is still free entry and exit.

3) Oligopoly - This is a market structure where there are more than two firms. Businesses in an oligopoly tend to set prices rather than take prices from the market. Thus, returns are higher than they would be in a more competitive market.

4) Monopoly - This is a market structure where there is only one firm in the market. The firm has total control over the price and quantity of the product.

The level of competition in a market affects the cash flow for two reasons. First, in a more competitive market, businesses distribute less dividends to their shareholders because they are reinvesting the profits back into the business in order to stay competitive.

Second, in a more competitive market, businesses are forced to offer lower prices, which reduces the amount of cash flow that they receive from customers. This means that businesses in a more competitive market have less money to work with, which affects their ability to grow and expand.