Perfect Competition (Grade 12 NSC Matric Economics): Flashcards
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Perfect competition definition
Perfect competition definition
Theoretical market where no participant influences prices
Participants who accept market price
Participants who accept market price
Price-takers
Number of essential conditions for perfect competition
Number of essential conditions for perfect competition
Seven
Product characteristic in perfect competition
Product characteristic in perfect competition
Homogeneous (identical)
Effect of large number of buyers and sellers
Effect of large number of buyers and sellers
No individual can influence market price
Interference not allowed in perfect competition
Interference not allowed in perfect competition
Government interference and cartels
Information access requirement in perfect competition
Information access requirement in perfect competition
Complete and immediate access to market conditions
Market entry/exit barrier characteristic
Market entry/exit barrier characteristic
Minimal barriers
Real-world examples close to perfect competition
Real-world examples close to perfect competition
Stock exchanges, foreign exchange, grain, agricultural markets
Individual firm's demand curve shape
Individual firm's demand curve shape
Horizontal