Perfect Competition vs

Perfect competition is a market structure where there are more buyers and sellers, a variety of products, no one controls market price, and consumers have more choices.

Examples of industries that exhibit perfect competition include agricultural goods, stock market, online retail, foreign exchange market, and bottled water industry.

The characteristics of perfect competition include a large and homogeneous market where no single buyer or seller can influence the market price, perfect information availability where everyone knows everything about the market, abundance of control where the government cannot control the price, and cheap transportation with no significant costs to transporting goods.

<p>In perfect competition, buyers and sellers initiate the buying and selling mechanism with no restrictions and there is an absence of direct competition. Sellers sell their products at identical market prices.</p> Signup and view all the answers

<p>The theory of perfect competition assumes perfect conditions, such as perfect information availability and identical market prices. However, in reality, perfect competition may not fully exist due to various factors.</p> Signup and view all the answers