13 terms

Economics: Perfect Competition

Imperfect markets have higher prices than perfect markets.
a market structure in which a large number of firms produce the same product
Perfect Competition
If an individual seller tries to increase the price of their product in a perfectly competitive system then:
the individual will not be able to sell any of their product.
Which of the following is NOT a condition for perfect competition?
Sellers offer a wide variety of products.
One of the four conditions for perfect competition is few sellers and buyers.
the expenses a firm must pay before it can begin to produce and sell goods
start-up costs
Barriers to entry can include technology, start-up costs and imperfect competition.
One of the four conditions for perfect competition is identical products also called commodities.
A barrier to entry is defined as any factor that makes it difficult for a new firm to enter a market.
Which of the following is a condition of a perfectly competitive market?
identical products
What is one of the effects that the Internet has had on business?
It has reduced start-up costs for many businesses.
product that is considered the same no matter who makes or sells it.
Some examples of barriers to entry are technology and start-up costs.