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In a market where there is perfect competition between two companies and there are four key elements to perfect

competition: large number of buyers and sellers, no barriers to entry or exit, perfect mobility for customers choosing products and homogenous products.

How are output, price, and profit determined in this perfectly competitive market in the long run.

How does that lead to efficiency?

How could changes in technology affect the market? How could an increase in demand affect the market?

What are the effects of new businesses entering the market? What are the effects of businesses leaving the market?

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