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

EM
Answered by Esmee M. Economics tutor

2661 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Please outline the fundamental Kalam and evaluate its weaknesses


Explain fiscal policy and how it can be used


How can the Central Bank use Monetary Policy to achieve Economic Prosperity


What impact would a cut in the base rate by the Bank of England have on Aggregate Demand?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning