Busineg Econories Roll no- 234|408008O

Batch-guly 2023(sem-4)

a) Explain bnefy teatuss of peutect comnpettron.

chaactex'ze
A: Pertect competton, keveral key teatues.
the mauleo!

" Many Gnall tirm:

’Numue tims exist, each
producingnch producing a domegout
Produet.
prwe
| No single firms has signtcant makot
) duntiaal produets
or sewices
that ae hdistongusabBe
AU tms produce qooda
competito.
Product om those ot
diftuenee Jbetween productk.
CensuMs þereeive no

&Tt :
|3) Prae t y and oith o t arleli.
entea or exitthe mauket
| ’ Fmns can
eitricbnu prevent neus
frme fen conmpe ting
No

4) teteet ntstnatton:
.abeut
Bye and solles have Corplete knooledqe
Prices, quality and availaliuthy
No intolmation asymetry eaists.
’ fims e pr'ce takee, meanlnq they aceept tha preuatltng
malbet price
lodridual Arm cannot in lunee prices

Rett mariy3ton:
Fim aims to maxize profs by produ ctng wohere
margnal cott equala maugnal oevd
No Xce& profts e/s ts the Song
n the

No Non-price eoefition
Fms Comphkte solely on prtee.
Aduutismq and brandng play no ole.

petect oloility move tteely etwcen

factovs of Produetion (labea, Capital)

No Sesoue immobrlihy hindwcenpetton.

Peutoct compettton epresen tt n idaaliged

Btructue ohee firm operate efficrenty prcea
nefdeet Bupply and demand, and cenpetttron in
ntense.