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What are the assumptions of a perfectly competitive market. List them and explain each of them with a few sentences.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Monopoly

Section: Chapter Questions

Problem 4WNG

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Question

b) What are the assumptions of a perfectly competitive market. List them and explain each of them with a few sentences.

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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