characteristics of perfectly competitive market includes 1.Homogeneous products i.e identical in shape,size,taste,color,e.t.c 2.perfect knowledge to both consumers and producers 3.no transport costs incurred 4.perfect mobility of factors of production 5.common prices for identical goods in the market. 6.
monopoly
the economy Major of those four are the natural monopoly. geographic monopoly, govrnement monopoly. technological monopoly.
A perfect competitive market and pure monopoly market both have to follow the "law of demand".
A perfectly competitive market has many competitors. There is no one competitor that has more say in product prices within the industry.
There are multiple characteristics which correspond to an ideally competitive market. These are a rule of law and contracts enforcement, competition through multiple merchants, market integrity against anti-competitive behaviors, and consumer confidence.
monopoly
the economy Major of those four are the natural monopoly. geographic monopoly, govrnement monopoly. technological monopoly.
A perfect competitive market and pure monopoly market both have to follow the "law of demand".
The difference between a monopoly market and a perfectly competitive market is that in a perfectly competitive market there are many sellers and buyers, the traded goods are homogeneous goods or the same goods and sellers are not free to set prices. whereas, a monopoly market is a market that has only one seller, so buyers have no other choice and sellers have a large influence on price changes.
A perfectly competitive market has many competitors. There is no one competitor that has more say in product prices within the industry.
There are multiple characteristics which correspond to an ideally competitive market. These are a rule of law and contracts enforcement, competition through multiple merchants, market integrity against anti-competitive behaviors, and consumer confidence.
In Monopoly, there is no market power as the monopoly firm is the only supplier and holds pricing power. However in a perfect competitive market, prices are set by interaction of supply and demand. This is why monopoly markets are undesirable relative to perfect competitive market.
Many buyers and sellers, free market entry and exit.
There is no such thing as a perfectly competitive market. It is merely a economic model to compare other market structures to. Cigarette market is more likely a oligopoly.
By Market Force
no
Perfectly competitive firms would not advertise as advertising would serve no purpose. A market that is perfectly competitive exists only in theory.