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Unformatted text preview: 1 Perfect Competition Short Run Perfect Competition Short Run Chapter 10-1 A Perfectly Competitive A Perfectly Competitive Market Market z A perfectly competitive market is one in which economic forces operate unimpeded. A Perfectly Competitive A Perfectly Competitive Market Market z A perfectly competitive market must meet the following requirements: z Both buyers and sellers are price takers. z The number of firms is large. z There are no barriers to entry. z The firms products are identical. z There is complete information. Perfect Competition Perfect Competition Perfect competition is a firm behavior that occurs when many firms produce identical products and entry is easy. Characteristics of perfect competition : z There are many sellers. z The products sold by the firms in the industry are identical. z Entry into and exit from the market are easy , and there are many potential entrants....
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This note was uploaded on 01/01/2011 for the course ECON 101 taught by Professor E during the Spring '10 term at American College of Computer & Information Sciences.
- Spring '10
- Perfect Competition