Principles of Microeconomics / Unit 7 MIC 0602 short lesson, about 20 seconds
Four Conditions of Perfect Competition
Captions available
The idea
Perfect competition needs many firms selling identical products, many buyers, full information on both sides, and free entry and exit.
In practice
Grain, generic drugs and lawn mowing come close; airlines and phones do not.
Where people slip
No real market meets all four; the model is a benchmark, and its predictions still hold where markets come near it.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
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