Perfect Competition

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“Perfect Competition”Please respond to the following:

  • Firms like Wal-Mart, Target and K-Mart are often given as examples of competitors. Ironically, these firms are not what an economist would define as perfectly competitive firms. Why? What are the conditions that create ‘perfect competition?’ Can you give an example of a perfectly competitive good or firm?
  • What conditions are are present that create perfect competition?

 

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