perfectly competitive markets Flashcards
1
Q
what are the features of a perfectly competitive market?
A
the features of a perfectly competitive market include:
- many small firms
- homogenous good
- large number of buyers
- firms are price takers
- perfect knowledge/information
- freedom of entry and exit
- all factors of production are mobile
2
Q
do perfectly competitive firms exist?
A
perfectly competitive firms do not exist
