Perfect Competition

Question 1

What are characteristics of perfect competition?

Answer 1

Large number of independent buyers and sellers, each too small to affect price

Question 2

Perfect competition markets are virtually non-existent in modern society?

Answer 2

TRUE

Question 3

In perfect competition, demand is constant?

Answer 3

TRUE! The price is set by the market and each individual market cannot effect the price.

Demand = Marginal Revenue Curve=MARGINAL COST!!