What are the assumptions associated with a perfect competition

[Stardom22]

A large number of sellers and buyers exist in the market
Production of identical (homogeneous) products by different firms
There is no government interference

 

[Shavkat]

I think if the government impose a strict rule in having patent. Once the item has a patent, no one would dare to copy it.

 

[cherry123]

I think the business will do better as the government wouldn't need to interfere or impact the market.

 

[flower]

The contribution of the government in businesses is very essential because it will help in the growth of the business creditably.

 

[IB D]

All these things are assumptions but are not really practical in the real sense. There is no way government can stop interference in business. They are the regulators.

 

[eldavis]

I do not think government can even do much about this cause in the first place they have not been able to provide jobs for does in need of it, so these people have no option but to look for ways to survive themselves.

 

[Stardom22]

It is assumed that the consumers have the same preferences and tastes about the products and goods that they are looking for. Also the sellers sell almost similar to equal goods on the quality and quantity.

 

[Niyi Briggs]

One assumption that I like about perfect competition is that all the firms are price takers. The market fixes the price by itself and even the government has no power to interfere.

 

[Magnus2022]

A large number of sellers and buyers exist in the market
Production of identical (homogeneous) products by different firms
There is no government interference

Why should government interfere ? They use to say that varieties is spice of life. Government should encourage competition among the producers so that the price of the goods will always remain at a reasonable price. What government have to do is to monitor and make such that competition is healthy and did not turn sour.

 

[Niyi Briggs]

Why should government interfere ? They use to say that varieties is spice of life. Government should encourage competition among the producers so that the price of the goods will always remain at a reasonable price. What government have to do is to monitor and make such that competition is healthy and did not turn sour.

Perfect competition would give you better products since the companies are competing against each other for market share which would lead them to offer better products.

 

[Heatman]

Unfortunately the government of my country will always interfere in any kind of businesses especially when it comes to the taxes that they forced those businesses to pay because it is the only thing that interested and I'm not the survival of those businesses. Whether those businesses are in good competition with their rivals, it is not going to matter to those government.