Question

“Perfect Competition is a pure myth.”" What do you mean by we will see from the close? What types of firms or industries would come closest to fitting into perfect competition?

Answer 1

When we see from the close, is impossible to have zero entry cause as there will be some kind of entry costs for any businesses which might act as barriers and apart from that there is some sort of information hidden from the sellers regarding the quality of the homogenity of the product etc. All these reasons make perfect competition a myth. However there are certain industries which come close to it such as selling of agricultural products or fruits etc, opening a maid service etc.