Markets can be classified into two depending on the intensity of competitive forces: as perfect competition and imperfect competition. Markets for all goods and services are scattered on a continuum ranging from perfectly competitive markets at the one end to monopolistic markets, the least competitive example to imperfect competition, at the other end. In perfect competition, there are a large number of buyers and sellers, so no individual buyer or seller ca have the power to alter the market price. The prices are transparent. On the other hand, imperfect competition may be in the form of monopoly or monopsony. The true answer is E.