Economics Supply And Demand Questions
Perfect competition is a market structure characterized by a large number of buyers and sellers, homogeneous products, perfect information, free entry and exit, and no individual buyer or seller has the ability to influence the market price. In perfect competition, all firms are price takers, meaning they have no control over the price and must accept the prevailing market price. Additionally, there are no barriers to entry or exit, allowing new firms to enter the market easily and existing firms to exit if they are not profitable. Overall, perfect competition promotes efficiency and ensures that resources are allocated optimally in the market.