0
I have found one example on wikipedia where it says that eBay auctions can be seen as perfectly competitive. There are very low barriers to enter the market which means that anyone can sell a product, as well as buyers can buy any product they are looking for.
Farming is also a perfect competition.
Wiki User
∙ 12y ago
Wiki User
∙ 11y agoPerfect competition is a model that is used for understanding interactions.
If you are on a desert island and there is one vendor who sells water, that vendor has a perfect monopoly on drinkable water. If you are in the market for fish and the sea is filled with boats offering fish, that would be closer to perfect competition. It would take you time to negotiate with each boat in the entire ocean, so the competition will never be "perfect". But you can imagine the difference. The water would be high in price and the fish would be low in price.
Add your answer:
Earn +20 pts
The highest form of competition in economics called?
perfect competition
Who has the exercise about fundation year economics such as the theory of the perfect competition and economics of the firm?
die
Explain in what way a perfect competition model is a useful analytical tool in economics?
the perfect model
What use is the concept of perfect competition in business economics?
circular flow
What are the resources allocation under perfect competition?
In economics, perfect competition is a structure that allocates resources as efficiently as possible. When this happens, price and marginal cost are equal.
What is the Price elasticity of demand in each of the four market structures perfect competition monopoly monopolistic competition and oligopoly?
Perfect competition is perfectly elastic (taken from my Economics textbook)...still searching on the other three.
What is the Price elasticity of demand in each of the four market structures - perfect competition monopoly monopolistic competition and oligopoly?
Perfect competition is perfectly elastic (taken from my Economics textbook)...still searching on the other three.
What are the examples of perfect competition in business?
In economics, perfectly competive markets are those where neither consumer nor producer have influence over prices; they are price takers. Examples follow:Agritgultural Products, commodities such as corn and wheatSemiconductorsUnskilled Labour
Is housing property market perfect competition?
No. There is no such thing as a perfectly competitive market, as it is only used as a model in economics.
Use examples to show the difference in the profit maximization goal of perfect competition and monopoly?
Shut
Explain in detail with suitable examples the imperfect competition and perfect competition?
In imperfect competition the producer is the price maker whereas in perfect the producer is the price taker. In imperfect no new competitors enter the industries hence super normal profits will continue to be realised, unlike in perfect comp
Is IBM perfect competition?
IBM is a company, so it can't be a perfect competition. Only industries can be a perfect competition, or not.
