Market Structures

Business StudiesIntermediate Level

10 flashcards

Card 1 of 1010%

Question

What are the main characteristics of perfect competition?

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Answer

Definition

Perfect competition is defined by many buyers and sellers, homogeneous products, and free market entry and exit. This structure leads to optimal resource allocation.

Example

Agricultural markets, like wheat or corn, often exhibit perfect competition due to many farmers selling identical products.

Quick Tip

Think 'many sellers, one product'.

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