Theme 3 - Chapter 47 Key terms Flashcards
1
Q
Perfect competition
A
A market structure where there are many buyers and sellers, where there is freedom of entry and exit to the market, where there is perfect knowledge, and where all firms produced a homogenous product
2
Q
Price taker
A
A firm which has no control over the market price and has to accept the market price if it wants to sell its product.