A market structure in which the following five criteria are met:1) All
firms sell an identical product;2) All firms are price takers - they
cannot control the market price of their product;3) All firms have a
relatively small market share;4) Buyers have complete information about
the product being sold and the prices charged by each firm; and5) The
industry is characterized by freedom of entry and exit.Perfect
competition is sometimes referred to as "pure competition"
Perfect competition is a theoretical market structure. It is primarily
used as a benchmark against which other, real-life market structures are
compared. The industry that most closely resembles perfect competition
in real life is agriculture.
Jan 29th, 2015
Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.