In the context of economic theory, which of the following best describes the difference between perfect and imperfect competition in markets?
1
Perfect competition involves a large number of buyers and sellers, while imperfect competition has only a single buyer and seller.
2
Perfect competition refers to a market with price-takers, whereas imperfect competition represents markets with price-makers.
3
Perfect competition is characterized purely by consumer preferences, while imperfect competition is determined by advertising and branding.
4
Perfect competition involves government intervention, while imperfect competition is a result of laissez-faire economic policies.