The model of perfect competition
The model of perfect competition
Perfect competition is a market structure with very many small buyers and sellers, a homogeneous product, perfect knowledge, and free entry and exit. A homogeneous product is identical whichever firm supplies it, so buyers have no reason to prefer one firm's product.
Step-by-step lessons on Edexcel A A Level Economics 3.4.2 Perfect competition. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.