Perfect Competition — definition?
Many small firms, identical products, no market influence.
Perfect Competition — key feature?
Many firms, identical products, price takers
Monopolistic Competition — role?
Many firms, differentiated products, some pricing power.
Price Taker — what?
Accept market price, cannot influence it
Oligopoly — difference?
Few large firms, interdependent decisions, potential collusion.
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
Test your knowledge with 9 questions on Market Structures and Competition.
1. What is perfect competition?
2. What is a defining characteristic of a perfectly competitive market in terms of product type?
Review the complete course in the revision sheet for Market Structures and Competition.
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