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Market Structure (The Video Series) - Perfect Competition

in economics •  26 days ago


Hi Everyone,

I am bringing my market structure series to video. I have seven written posts on market structure. Not everyone prefers the written format so I am covering the same topics on video.

Quick Summary of the main points in the video

This video explores perfect competition. Perfect competition is one of the most discussed market structures in mainstream economics. It is normally the first market structure taught in economics courses. Ironically, perfect competition has very few real life examples. It can be considered more of theoretical framework than an example of a real world market structure.

Perfect competition has the following characteristics:

  • Many buyers
  • Many sellers
  • Homogeneous products
  • No barriers to entry
  • Firms are price takers not price setters
  • Normal profits in both the short-run and long-run
  • Allocative efficient price and quantity can be achieved
  • Buyers and sellers have perfect information regarding products and cost structures

Perfect competition is often used as an assumption in economic modelling to simplify the creation of the models. Perfect competition also sets a good framework for understanding the outcomes from purely competing on price.

I hope you enjoy the video.

All of my written market structure posts can be accessed using the following links.

Introduction to market structure written post can be accessed using the following link.

MS1.jpg

Perfect competition written post can be accessed using the following link.

Perfect_THUMB.jpg

Monopolistic competition written post can be accessed using the following link.

MonopolisticTHUMB.jpg

Oligopoly written post can be accessed using the following link.

OligTHUMB.jpg

Monopoly written post can be accessed using the following link.

Mono_THUMB.jpg

Monopsony written post can be accessed using the following link.

MonopsTHUMB.jpg

Oligopsony written post can be accessed using the following link.

ThumbOLIg.jpg

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@spectrumecons, Markets are the vital and backbone of the any country and if the process is holds the ease in Establishments then for sure we can see that boosting aspect for many sellers.

Yes, Perfect Market practically is not possible in my opinion and that is because there are many Manipulative aspects too where Small Scale Seller entrants face the deep impact.

And many buyers also not the correct aspect because, in my opinion in current times the markets are so diversified and in numbers, and there are many aspects where now many brands are there in market, and they use the effective marketing, and for one phase of products and services, there is lot of competition, so this diversification may be inviting less consumers towards their products and services.

And next point is, less Purchasing Power. Many people hold the lack of Purchasing Power and this situation minuses the players from the Many Buyers book.

Wishing you an great day and stay blessed. 🙂

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Perfect competition is exceedingly rare. So it is not realistic as a real life market structure. Though I certainly think 'Perfect Competition' can be used as an 'Ideal Type' as in the context explained by Max Weber. So we can take 'Perfect Competition' to mean 'Pure Competition' in a more literal sense.

There are some neo-classical economists that believe 'Perfect Competition' is the most desirable form of market structure if possible. I do not believe that to be the case. I strongly support competition but I also believe in the opportunity to create some advantages. Though creating advantages can limit short-run competition, it also generates profits which is a long-run incentive to improve.

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Good to go through from more deep insights.

Sure. You have a great idea. Let me watch the video now.

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Go for it.

You can also access this video on YouTube using the following link.

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Cool, thanks for the upvote. I only delegated SP to you yesterday, you move pretty quick.

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