Competitive Markets

There are many distinct characteristics that classify a market as Perfectly Competitive including:

  • Very large number of firms
  • Homogenous products
  • Entry and exit into the market free of barriers
  • Perfect Information
  • Individual firms are price takers
  • Long run economic profits will be zero


Given these characteristics of a perfectly competitive market, select one of the characteristics listed. In your post:

  • Fully explain what that characteristic means and what its importance is to classifying a market as perfectly competitive.
    • If you have noticed this characteristic in a certain market, explain where you have seen it before or provide your own example.
  • Would you see the characteristic you are discussing in any of the other three market structures – monopolistic competition, oligopoly or monopoly?
    • Why or why not?

Where appropriate, cite examples from your text or other readings.Rubric says:

Post includes substantial and thoughtful content with appropriate terms and concepts learned in the course utilized. Post addresses fully the topic question.

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