3.3 Perfect competition Flashcards
1
Q
Who is perfect information ideal for?
A
The consumer
2
Q
Why doesn’t perfect competition exist in real life?
A
It is impossible to meet all conditions at once
3
Q
Why is perfect competition a hypothetical standard?
A
Perfect competition provides a standard of comparison of what is desirable / undesirable in real world markets
4
Q
What can perfect competition be used to measure?
A
- Whether a monopoly functions efficiently or inefficiently
- Misallocation of resources in a monopoly
