CA02_06 - In±nite Buyers/ In±nite Sellers Insigni±cant....

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PERFECT COMPETITION Firms behave in the same way, Consumers behave in the same way No interaction, absence of collusion both among ±rms & among consumers & between ±rms & consumer. Actors Behaviors (Strategy) Context Rules of Interaction Target Seller & Buyers
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Unformatted text preview: In±nite Buyers/ In±nite Sellers Insigni±cant. Same for all actors: (Demand & Offer). Same: P = Average Costs (minimum) Transactions are Costless Perfect Information No Entry / Exit Barriers Products are homogeneous Maximize the pro±t: however always equal to zero...
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