Slides about Economics topic name:Perfect Competition

1. Perfect Competition

2. Perfect Competition
 The concept of competition is used in
two ways in economics.
 Competition as a process is a rivalry among firms.
 Competition as the perfectly competitive market
structure.

3. Competitive Markets
A competitive market is a market in which there are
many buyers and sellers so that each has a negligible
impact on the market price.

4. Market Structures

5. Perfect Competition
• It is a theoretical model.

6. Perfect Competition
 Assumptions:
 Large number of firms.

7. Perfect Competition
 Assumptions:
 Individual firms are “price takers”.

8. Perfect Competition
 Assumptions:
 Homogeneous products.

9. Perfect Competition
 Assumptions:
 Freedom of entry and exit.

10. Demand curves for industry and firm in
perfect competition
 Industry:
 Normal demand and supply
curves.
 More supply at higher price and
less demand and higher price.
 Firm:
 Price takers.
 Have to accept the industry
price.

11. Differencce

12. Thank You For Your
Attenation…!!!

13. Any Question.?