Perfect Competition Large No of Buyers Sellers the action of an individual buyer or seller is unable to affect the market price KREY x Buyers Sellers
Large No. of Buyers & Sellers • the action of an individual buyer or seller is unable to affect the market price Buyers Sellers
Perfect Competition Homogeneous Products the products in the market must be dentical in the eyes of consumers
Homogeneous Products • the products in the market must be identical in the eyes of consumers
Perfect Competition Free Entry and Exit Firms are free to entry or leave the market Welcome to Perfectly Competitive Market Exit!!
Free Entry and Exit • Firms are free to entry or leave the market Welcome to Perfectly Competitive Market Entry!! Exit!!
Perfect Competition Perfect market Information buyers Sellers know all market information about goods e.g Price Quality Quantity
Perfect Market Information • Buyers & Sellers know all market information about goods e.g. Price Quality Quantity
Perfect Competition EXample: The stock exchange is a close example
Example: • The stock exchange is a close example