Perfect competition is a market structure where many firms offer a homogeneous product. Because there is freedom of entry and exit and perfect information, firms will make normal profits and prices will be kept low by competitive pressures.
Features of perfect competition
Many firms.
Freedom of entry and exit; this will require low sunk costs.
All firms produce an identical or homogeneous product.
All firms are price takers, therefore the firm’s demand curve is perfectly elastic.
There is perfect information and knowledge.
Equilibrium under Perfect Competition through MC and MR in short run
Profit Condition
Loss Condition
No Profit No Loss Condition
Equilibrium under Perfect Competition through MC and MR in long run
Condition of Normal Profits
AC AR MC MR TC TR Equilibrium Profit Loss No Profit No Loss Normal Profits
Perfect Competition ke diagram kaisey banaayein
Diagram banane ka saral tareeqa
Check Other videos of Knowledge Stairs on Research Methodology:
Introduction of Research, Definition, Features, Objectives: www.youtube.co....
Types of Research: www.youtube.co....
Research Proposal: www.youtube.co....
Research Design: www.youtube.co....
Research Problem, Formulation, Factors, and Process: www.youtube.co....
Measurement Techniques: Goodness, Tools and Problems: www.youtube.co....
Paired Comparison Method of Scaling: www.youtube.co....
Tools of Measurement Scale: Nominal, Ordinal, Interval and Ratio Scale: • Tools of Measurement S...
Objectives of Research: • Objectives of Research...
Criteria of a Good Research: • Criteria of a Good Res...
Features of Research: www.youtube.co....
Pilot Study: www.youtube.co....
Clinical / Diagnostic Research: www.youtube.co....
Demand (Need, Want, Desire): www.youtube.co....
Research Design: www.youtube.co....
Law of Demand: www.youtube.co....
Nominal Scale: www.youtube.co....
Change in Demand (Increase, Decrease, Expansion, Contraction): www.youtube.co....
What is Research: www.youtube.co....
Concepts of Demand: Price, Income, Cross, Joint, Direct, Derived: www.youtube.co....
Ordinal Scale | Scales of Measurement: www.youtube.co....
Interval Scale | Scales of Measurement: www.youtube.co....
Ratio Scale | Scales of Measurement: www.youtube.co....
Business Research Methods
Research Methodology
Quickest and Easiest Explanation in Hindi
UGC NET
Ph.D
BBA
MBA
B.Com
M.Com
B.Com (Hons)
BA
MA
Class XIth
Class XIIth
Law
Humanities
Social Sciences
Social studies
Engineering
Medical
Sociology
Psychology
Social Work
Statistics
UGC NET
Ph.D
#ugcnet
#Micro_Economics
#Managerial_Economics
#Perfect_Competition
#UgcNetPaper1
#lastmomentstudy
#lastminutestudy
#knowledgestairs
#DetailedCourse
Music Credits: Filmstro.com