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What are the conditions for perfect competition?
A perfectly competitive market implies that there are plenty of consumers and producers in the market. Other crucial conditions for perfect competition include:
- Sellers and buyers have accurate data about the commodity price
- Every good is a perfect substitute
- Every company produces a homogeneous product
- No obstructions to either exit or entry from the market
Why are conditions for perfect competition important?
One of the main conditions for perfect competitions is that the demand curve is considered perfectly elastic for individual and small firms. Furthermore, in a perfectly competitive market a firm is a price-taker. It accepts the market price and cannot control it. This contradicts real-life scenarios, where a business can control its price, such as that of a monopoly business. Understanding these conditions helps to operate better in the modern day market conditions. Myhomeworkhelp.com’s Conditions for Perfect Competition Assignment Help service provides tutors that can brush up your basic understanding of the subject along simultaneously completing your assignment. The experts include all the important theoretical elucidations, graphs, charts and diagrams to help you score excellent marks. Our assistance is available to you 24×7. In terms of price, our service is completely affordable.
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