<name removed to preserve anonymity> Fall, 2011 ECON220 Unit 3 Discussion Board A market in which the price-takers comprise every other market within it is defined as a perfect competition (Krugan & Wells, 2009). In order for market to be considered perfectly competitive, four conditions of that market are required: 1. Many small in total sales sellers must be present in the market. 2. Exit from and entry to the market should be relatively easy for a seller. 3. Identical product must be sold by each seller 4. Complete information about product quality, production techniques, and prices must be available to both buyers and other sellers in the market. Price takers, as defined by Krugan & Wells, are in fact any seller operating within the given perfectly competitive market since the seller is not capable of controlling the price of the good and therefore takes and accepts the price given to the good by the market.
This is the end of the preview. Sign up
access the rest of the document.
This note was uploaded on 01/08/2012 for the course ECON ECON220 taught by Professor Opalat during the Summer '11 term at AIU Online.