Question

Identify the characteristics of markets with perfect competition ware Drag each item on the left to its matching item on the right. not perfect competition Firms produce differentiated products. There are significant barriers to entry and exit to the market Firms produce very similar products. Firms have significant price control." Firms are very small relative to the market. There is a large number of firms." Firms have no price control. perfect competition

Answer 1

In perfect competition markets, many firms produce identical products, full market knowledge is shared, and there's free market entry and exit, with no price control by individual firms.

Step-by-step explanation:

The characteristics of a market with perfect competition include many firms producing identical products, a large number of buyers and sellers, full knowledge of the market by all parties, and free entry and exit from the market. In contrast, markets that do not exhibit perfect competition may have firms producing differentiated products, significant barriers to entry, and firms that can exercise some control over prices. Markets with perfect competition are characterized by firms being price takers due to their small size relative to the total market, which leads to no individual firm having significant price control.

Answer 2

Perfect competition is characterized by the production of identical products by many firms, a large number of buyers and sellers, full access to relevant information, and no barriers to entry or exit, resulting in firms having no price control.

Step-by-step explanation:

Markets with perfect competition feature several distinct characteristics. Firstly, many firms produce identical products. This homogeneity means that consumers do not differentiate between goods produced by one firm versus another. In addition, there are many buyers and sellers, so no single firm can control the market price, leading to the characteristic where firms have no price control.

Another defining trait of perfect competition is the presence of all relevant information available to both buyers and sellers, allowing for rational decision-making. Lastly, no significant barriers to entry or exit exist; firms can freely enter or leave the industry, which is not typically the case in monopolistic or oligopolistic markets. In contrast, markets that are not perfectly competitive, such as monopolistic competition or oligopoly, involve differentiated products, barriers to entry and exit, and scenarios where firms have some control over price.