Perfect competition
Videos
Examples
Street food vendors
Free software
Agricultural markets
Characteristics
resources such a labor are perfectly mobile
All firms are price takers (they cannot influence the market price of their product)
Non artifiicial restrictions
Buyers have complete or "perfect" information – in the past, present and future – about the product being sold and the prices charged by each firm
market share has no influence on price
Homogeneous producall firms sell an identical product (the product is a "commodity" or "homogeneous") t
Large buyers and sellers
Firms can enter or exit the market without cost.
Independent relationship between buyers and sellers
Definition
theoretical market structure in which competition is as its greatest possible level.
The principle is the pure competition where any external factor influences in the product or service sale.
Disadvantages
Lack of product variety
Unequal distribution of goods and income
The conditions are very strict,there are few perfectly competitive markets
Insufficient profits for investement
Topic flotante
Advantages
Consumers benefit: consumers charged a lower price
Responsive to consumer wishes
Helps allocate resouces to most efficient use
Encourages efficiency
