1. Perfect Competition

2. A market structure in which a large number of firms all produce the same product A market structure in which a large number of firms all produce the same product Four conditions for perfect competition Four conditions for perfect competition Many buyers and sellers participate in the market Many buyers and sellers participate in the market Sellers offer identical products Sellers offer identical products Buyers and sellers are well informed about products Buyers and sellers are well informed about products Sellers are able to enter and exit the market freely Sellers are able to enter and exit the market freely

3. Perfect Competition Barriers to entry Barriers to entry Factors that make it difficult for new firms to enter a market Factors that make it difficult for new firms to enter a market Start up costs Start up costs Expenses the new business must pay before the first product reaches the customers Expenses the new business must pay before the first product reaches the customers Perfect competition has no barriers Perfect competition has no barriers

4. Perfect Competition Prices in a perfect competition are low Prices in a perfect competition are low Competition keeps it that way Competition keeps it that way Business have no control over what the prices are Business have no control over what the prices are