Week 2_1 Perfect Competition

Step 1:

Get to know Basic Concepts:

-- Perfect Competition is a type of market structure.

-- Characteristics of Perfect Competition:

1. Many firms sell identical products to many buyers.

2. There are no restrictions to enter into the industry.

3. Established firms have no advantages over new ones.

4. Sellers and buyers are well informed about prices.

Step 2:

Question:

Why no single firm can influence the price?

Discuss with fellow students in Discussion Forum.

Step 3:

Watch the Video: