Perfect Competition — definition?
Many small firms, identical products, no market influence.
Monopolistic Competition — role?
Many firms, differentiated products, some pricing power.
Oligopoly — difference?
Few large firms, interdependent decisions, potential collusion.
Perfect Competition — key feature?
Many firms, identical products, price takers
Price Taker — what?
Accept market price, cannot influence it
Homogeneous Products — definition?
Identical in quality and features
Perfect Information — role?
Complete market data access
Free Entry and Exit — effect?
Long-term normal profits, no barriers
Market Equilibrium — determines?
Supply meets demand, sets price
Long-run Passive Profit?
Zero, due to free entry/exit
Answer 9 questions on Market Structures and Competition.
1. What is perfect competition?
2. What is the defining feature of firms operating in monopolistic competition?
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