Th3.4: Perfect Competition Flashcards
1
Q
What is perfect competition?
A
a market where there is a high degree of competition, but the word ‘perfect’ does not mean it maximises welfare or produces ideal results
2
Q
What is it like in reality?
A
the assumptions made rarely hold and no market is completely perfectly competitive
3
Q
Suggest an industry which fits this type of market structure?
A
agriculture but government interferences may prevent it from being so
