Asked by
Elyse Reese
on Nov 04, 2024
Verified
Demand for the product of an industry in perfect competition is assumed to be inelastic.
Perfect Competition
A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information.
Inelastic Demand
Demand that responds somewhat, but not a great deal, to changes in price. Inelastic demand always has a numerical value between zero and 1.
- Describe the defining features that make perfectly competitive markets unique when compared to other market structures.
Verified Answer
BE
Learning Objectives
- Describe the defining features that make perfectly competitive markets unique when compared to other market structures.
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