Perfect competition is a particular ...
Perfect competition is a particular type of marketplace in microeconomics. Perfect competition is the theory of price formation prepared by classical economists. According to classics, there should be no outside interference in the market to effectively form a balance of value within any market. The classical theory is liberal theory. When the special conditions of this competition are paid, the market is balanced. This market is of great theoretical importance and compares with other market types (eg monopoly). Perfect competition is one of the two extreme forms of the market structure. (The other is monopoly - markets where there is no competition). In real life, the agricultural market is closer to the perfect competition. In general, there is no perfect competition environment in real life. Five conditions must be met for the market to be perfect. 1. The majority of buyers (demands) and vendors. In the event of a downturn, market participants have less market power, which means they can not affect prices. 2. Commodity uniformity or standard products. Companies offer the same product or service. The quality and features of the products sold are the same. So, buyers only choose for the price. 3. Free access to the market and output. Vendors on the market can not prevent the new vendors from entering the market. Everyone may enter the market without any limitation. There are no administrative, technical barriers or tariffs for entry. At the same time, sellers can freely leave the market. 4. Free generation of production factors (labor and capital). The production factors are completely volatile and they are free to move from one industry to another. Labor and capital are moving towards markets where supply is higher than demand. 5. Transparency of information. All participants in the market have information on all the important factors in the market. Participants have full access to product, price and other participants. Price is formed in the market. Participants have no market power and can not influence the price and accept it as it is.
These five conditions form the market price. This model is the basis of neo-classical theory. In a perfect competitive environment, the price market changes to balance, ie, to form the balance of value. Market participants are unable to influence market prices and are subject to market price. ('price takers' in English).
Posted from my blog with SteemPress : https://alfren.000webhostapp.com/2018/10/perfect-competition-is-a-particular
Congratulations @alfren ! You received a 11% upvote from @kryptoniabot & @kryptonia for your task of 416 SUP Today.
Remember to receive votes from @kryptoniabot
Run a task on Kryptonia.*Join free here Kryptonia Account
Use the tags KRYPTONIA or SUPERIORCOIN in your Steemit post.
Delegate to the Kryptonia Upvote by clicking links: 10SP , 50SP , 100SP , 500SP , 1000SP
Due to an increased amount of tasks, we have changed up the voting power to evenly spread out the Upvote amount.