Question

Discussion 6.1 Participate in this discussion. Defend your views by citing information from the Web and/or your own experiences. Post your response (by Wednesday) on the discussion board and then read and reply to the posts of at least two other students, (by Saturday) citing those views with which you agree or disagree as well as your reasons for agreeing or disagreeing. What are the key features of pure competition? Can we really have a perfect competition market? If Yes, why? If No, why not?

Answer 1

The key features of a perfect competitive are:
1. Large number of buyers and sellers
2. Easy entry and exit for firms
3. Identical good
4. Transparent and perfect knowledge of the market
5. No control over price
6. Demand curve is horizontal to x-axis

No it is difficult to have perfect competition as in a competitive world it becomes difficult to sustain in the long run by selling the identical goods. So in order to have a separate identity firms gets into value addition and branding which would help to differentiate itself from others and be safe in the market.