Perfect Competition

What is Perfect Competition?

• market structure that consists of one seller or producer of a product

• market structure where all firms sell identical products where there is no control of the prices

• market structure where in a market is dominated by a small number of large sellers

• market structure where many producers are competing against each other but different products

Which one below is not a factor that makes a Perfect Competition?

• Companies have no Influence on prices

• Large number of buyers and seller

• Sellers must accept the prevailing price of the market

• Sellers earn greater market share

Prices of a Perfect Competition are controlled by....

• Supply and Demand

• Incentives

• Sellers or Producers

• Buyers or Consumers

Which is an example of a Perfect Competition

• Mall

• Tiangge

• Food Court

The ones below are benefits of a Perfect Competition except

• Only requires cheap transactions since companies can get their products through one supplier

• Exit and Entry becomes easy for sellers because of their similar products

• Encourages creativity for sellers to standout to be able to earn profit

• Consumers can easily switch between similar products making sellers lose profit

A Farmer's Market is classified as a Perfect Competition because

• There are many buyers in the market place

• They sell the same produce at the same price

• There are many sellers found in the place

• There are many different kinds of produce