What are the characteristics of a perfectly competitive market?

In practice it is unlikely that the conditions of a perfectly comeptitive market will exist, however these conditions are set as:

  1. Many buyers and sellers in the market 

  2. Homogenous products 

  3. Perfect information avalable to consumers about prices.

  4. No barriers to entry or exit to the market

  5. Perfectly mobile factors of production

Answered by Esmee M. Economics tutor

2449 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How should I approach a data-response question?


Equilibrium of supply and demand


In the early 2010s the mobile phone company Orange merged with another mobile Network firm, T Mobile, in order to a form a new company called EE. Explain what type of merger this is and discuss some of the possible costs and benefits of this merger.


Define market failure and give two examples in which this may occur.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences