Abraham Baldwin Agricultural College The Perfect Competition Discussion & Response

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  Discuss Why ( or why not)  would you prefer the world we live in to a world of perfect competition?
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Hello friend this is my classmate respond please write 2-4 Perfect competition is a market structure in which the market forces set the prices, demand, and supply of commodities. In the real world, an ideal market does not exist; instead, we have imperfect markets like monopolies, oligopolies, and monopolistic competition since the market forces are not at equilibrium. The imperfect market would be better since businesses can generate higher profits by setting their prices higher and creating barriers to entry to avoid competition like improving on their technology. There is competition due to differences in designs and specifications of products, which ensures that consumers get the best and high-quality products . Rather than the homogenous products in a perfect market, consumers can get to compare over a wide range of products and services. The ideal market can lead to negative externalities such as pollution, which can be harmful to society.

 

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Other Market Structures:
Monopolistic Competition, Oligopoly, Monopoly – the real world.
Products are differentiated, limited number of firms in the market because of barriers to
entry
Firms make excess profits, are not efficient, and produce too much or too little.
This is the world as it exists.

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Explanation & Answer:
4 Sentences

Tags:
Monopolistic Competition

consumers

homogeneous products

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