Why do most markets in the real world fall somewhere between perfect competition and monopoly?

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When you let people in the market to freely compete with one another without any restriction, eventually there will be a sole winner who stand in the top of the competition.

When this happen , that sole winner will gradually accumulate wealth and the production process that it structured will become more efficient. This made that winner able to produce the product with really low price and expanded the operation using the gained wealth.

This will make it really hard for newcomers to compete with the existing winner. Eventually, the winner will takes it all and monopoly or  will naturally formed (or at least that winner will own majority of the market)

Perfect competition is an effort that people consciously do in order to prevent monopoly. They strictly regulated the competition to ensure that there no difference in price and types of products.

To put it simply, if we try to let free market take it course by itself, monopoly tend to unavoidable. If we try to restrict it without freedom to compete, we technically form a perfect competition.

This is why most markets in the real world fall somewhere between perfect competition and monopoly

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

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