Perfect Competition Flashcards
(6 cards)
1
Q
Are there barriers to entry?
A
No
2
Q
Do consumers have brand loyalty?
A
No
3
Q
Do firms advertise?
A
No
4
Q
Do firms compete on price?
A
No
5
Q
How do new entrants decide their price?
A
The new firms take the price which is set by the market. (Price takers)
6
Q
How much market power do firms have?
A
None. Firms have no influence on the market
