|
|
|
|
|
Competition as a process. |
|
|
|
|
|
|
|
Large number of “small” buyers and sellers. |
|
None large enough to affect market price. |
|
“Atomism.” |
|
|
|
|
|
Productive resources freely mobile. |
|
Free entry and exit. |
|
No “barriers to entry.” |
|
|
|
|
|
Perfect competitor is a “price taker.” |
|
Faces a perfectly horizontal demand curve. |
|
|
|
|
In the long run, profit attracts entry. |
|
|
|
|
Older view – before Adam Smith |
|
|
|
|
|
|
|
|
|
|
|
Notes