Question

Identify the characteristics of a perfectly competitive market structure

Short answer

It's no control over market supply and value. In the other circumstances, a difference for one company's current provision cannot result in a large rise in output availability.

Step-by-step solution

Ste[p 1: Introduction

There's an overwhelming buyers and sellers of a resource in competitive equilibrium. The numbers of buyers are such a lot of that one buyer buys a awfully small a part of the market supply. Similarly, one seller supplies a really small a part of the entire output. As a corollary, the sizes of a strong firm shrink in relationship towards the market in which it operates.

Given Information

All the sellers in a very perfectly competitive market supply a similar product. In all other respects, many of the competitive businesses' items are equal.

Explanation

As there are so many vendors providing a similar model, any corporation only offers a limited or unimportant chunk of the market. For this reason, it's no control over market supply and value. In these other terms, a difference with one company's business production cannot result in a huge growth in net availability. As both a reason, it will be unable to affect valuation by its own acts.