Part 1 special characteristics of purely competitive firms1

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Part 1: Special characteristics of purely competitive firms

1. How does the investment banks industry fit into the perfectly competitive model?

2. Does pure competition, as a market model, have any disadvantages for a) producers, and b) consumers? Give examples to substantiate your response.

Part 2: Analyze the conditions required for pure competition to exist in the real world

1. Is pure competition a "desirable" market model for all industries? Should industries aspire for pure competition? Why or why not?

2. Think of an industry that does not function in a purely competitive market currently. Describe the changes that would be required, if this industry wanted to function under pure competition.

Reference no: EM13375643

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