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Computer Science

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Miscellaneous

 

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Eddie P

 

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May 9, 2016

 

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University

 

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In theory, perfect competition implies no rivalry among firms. 1. ASSUMPTIONS: The model of perfect competition is based on the following assumptions. Large members of sellers and buyers: The industry or market includes a large number of firms (and buyers), so that each individual firm, however large, supplied only as a small part of the total quantity offered in the market...
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The buyers are also numerous so that no monopsonistic power can affect the working of the market. Under these conditions each firm alone cannot affect the price in the market by changing its output. Product homogeneity: The industry is defined as a group of firms producing a homogeneous product. The technical characteristics of the product as well as the services associated with its sale and delivery are identical...
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