Perfect Competition Homework Help
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Perfect competition – an important economic theory
Perfect competition is a complicated subject as it involves various economic market structures. The theory of perfect competition exists in respect of the following five criterions –
- When All firms sell an identical product.
- When all firms charge different prices for the same product as they cannot control the market price of the product.
- When all firms secure a small market share.
- When all buyers have complete information about the products that are being sold and prices charged by each seller.
- When the industry offers the freedom of free entry and exit to all firms.
These are some of the important aspects of this subject which requires serious attention and hard work from students and they don’t have that much of time to give into it. Therefore, they prefer to hire perfect competition assignment help from expert teachers. They not only help to complete assignments on time but also improve their knowledge on the subject.
Facts to know about perfect competition
Perfect competition is the opposite situation of monopoly market where a single firm sells a particular product or service, and the firm can charge whatever price it wants as customers don’t have any other option. Under such a situation, it is quite difficult for other sellers to enter into the product offering the same product.
Role of perfect competition in businesses
In a perfect competition market, there are many sellers, and therefore, customers have various options to choose the one that perfectly suit their budget and requirements. New firms can easily enter into the market and generate new competition. Companies can only secure a minimum profit to stay in the market because if they try to earn an excess profit, customers will reject its products and other companies will take its position by offering the same product at minimum prices.
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