Archive | Perfectly Competitive Market

Welfare Implications of a Perfectly Competitive Market | Economics

In this article we will discuss about the welfare implications of a perfectly competitive market. Favourable Features of a Perfectly Competitive Price System: Such a perfectly competition system yields certain beneficial conse­quences in long-run equilibrium. They are listed below: 1. Consumer preferences as reflected in the market-place would be fulfilled. Here P=MC=MU. So, both consumers and producers are satisfied. 2. [...]

By |2017-01-13T05:58:20+05:30January 13, 2017|Perfectly Competitive Market|Comments Off on Welfare Implications of a Perfectly Competitive Market | Economics

Characteristics: Perfectly Competitive Market | Economy

The following points highlight the top seven characteristics of a perfectly competitive market. The characteristics are: 1. Large Number of Buyers and Sellers 2. Homogeneous Product 3. Perfect Knowledge about the Market 4. Free Entry and Free Exit 5. Mobility of the Factors 6. Production Cost is the Only Cost 7. Horizontal Shape of the Firm's Average and Marginal Revenue [...]

By |2016-09-17T15:57:33+05:30September 17, 2016|Perfectly Competitive Market|Comments Off on Characteristics: Perfectly Competitive Market | Economy
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