3.4.2 - PERFECT COMPETITION Flashcards
1
Q
Define a perfectly competitive market
A
It is the most contestable market structure, defined by the characteristics:
- Many buyers and sellers
- Homogenous products
- Price taker firm
- Freedom of entry and exit
- Perfect information
- Firms are profit maximisers
2
Q
Efficiencies in perfect competition
A
In the long run, perfectly competitive firms are always allocatively and productively efficient.
3
Q
Rest of the spec
A
The worksheets go into detail and are good revision notes
