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You need these people in order to sell products. Money needs to exchange hands in order to be competitive.

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11y ago

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Why does a perfectly competitive require many participants as both buyers and sellers?

So no individual can control the price.


Why does a perfectly competitive market require many participants as both buyers and sellers?

So no individual can control the price.


What is one of the primary characteristics of perfectly competitive markets?

Many buyers and sellers, free market entry and exit.


Why does a perfectly competitive market require many participants as both buyers?

so no individual can control the price


what is the differences between Perfect Competition and Monopoly Market?

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.


What are the key differences between a perfectly competitive market and a non-perfectly competitive market?

In a perfectly competitive market, there are many buyers and sellers, products are identical, and there is easy entry and exit. Prices are determined by supply and demand. In a non-perfectly competitive market, there may be barriers to entry, products are differentiated, and firms have some control over prices.


Which market is the most competitve in economics?

A perfectly competitive market: 1) many buyers and sellers 2) no individual has influence over the market: buyers and sellers are price takers. 3) no barriers to entry 4) goods are perfect substitutes (no differentiation between products)


What are the key characteristics of a perfectly competitive market in the long run?

In a perfectly competitive market in the long run, key characteristics include: many buyers and sellers, identical products, free entry and exit of firms, perfect information, and firms earning normal profits.


Why is a perfectly competitive firm considered a price taker?

A perfectly competitive firm is considered a price taker because it has no control over the price of the goods or services it sells. In a perfectly competitive market, there are many buyers and sellers, and each firm's output is a small fraction of the total market supply, so individual firms must accept the market price set by supply and demand forces.


Why there is a large number of sellers and buyers in monopolistic competition?

large numbers of buyers and sellers


What are 4 characteristics of of pure competition?

the industry's demand curve is perfectly elastic


What is a perfectly competitive firm?

*** Market condition wherein no buyer or seller has the power to alter the market price of a good or service. Characteristics of a perfectly competitive market are a large number of buyers and sellers, a homogeneous (similar) good or service, an equal awareness of prices and volume, an absence of discrimination in buying and selling, total mobility of productive resources, and complete freedom of entry. Perfect competition exists only as a theoretical ideal.