Question

Key terms from lesson perfect competition market structure

Answer 1

Economists have become more interested in pure competition partly because of the growth of e-commerce as a means of buying and selling goods and services. And also because of the popularity of auctionsas a device for allocating scarce resources among competing ends.

Answer 2

Characteristics of Perfect Competition

Knowledge is available to all buyers and sellers, and no individual has control over the prices. Buyers and sellers have no barriers to enter or leave the market. Buyers and sellers want to maximize profit. There are too many sellers and buyers to take control of the market.