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Assignment:
Discuss Why ( or why not) would you prefer the world we live in to a world of perfect competition?
POST
Hello Friend this is my classmate respond please write 2 to 4 sentences The perfect competition seems to be the ideal form of market structure as compared to monopoly or oligopoly, comprising of high market concentration, high prices, deadweight loss as well as no competition. Perfect competition, even though is the ideal market structure, has some drawbacks too, for instance, the large number of firms cannot allow any single firm to gain economies of scale. In monopolistic competition, the products are differentiated from one another, and the number of firms in the market are limited due to barriers that are put in place to prevent entry. Operating in a perfectly competitive world means that the consumers only deal with homogeneous products that cannot meet the consumer needs since they cannot be differentiated according to consumer needs. But in real-world monopolistic competition allows for differentiated products and therefore I would prefer it since it leads to long-run profits and each firm has little market power.
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