What is the perfect competition?

, also known as pure competition, is the perfect competition of a situation where many business entities compete for consumers' attention, but there is no only company that dominates this market in terms of standing standards. The markets with this type of conditions usually have a large number of retailers who are able to satisfy the needs of the considerable consumer market and actively compete with each other for the business of these consumers. The situation of perfect competition, which is considered the opposite of the monopoly, basically means that all businesses involved in the market can freely set their own prices without any company setting a general market price.

There are several advantages of existence of a perfect competitive situation on the consumer market. One has to do with the possibilities of open customers. With a number of smaller companies offering similar products, the consumer can choose and choose from any of any of them to satisfy its biteeby. This situation seizes consumers who do not have to cope with one or two brands of the desired product, but can try multiple products when and as needed. Since market markets tend to penetrate more easily, the influx of new providers means that the consumer can enjoy other options over time.

The advantage of perfect competition for businesses is the ability to set its own prices, rather than determining price structures based on prices offered by one or two companies that dominate the market. This can allow companies to focus on the niches on the market that is more likely to pay the unit price that the company must achieve to remain profitable. In a monopoly situation, it would be extremely difficult to manage and would probably be expelled in the VER version by a smaller company from business short time.

along with the exhaustDami are also associated with some potential disadvantages with perfect competition. The market, which contains a number of options for consumers, can be intimidating for customers, especially for those who are not interested in trying different brands. In the case of this, the potential for earnings and maintaining the business of each consumer is reduced, a factor that can eventually reduce the entry of new companies into the market.

The lack of one company that is large enough to control market prices can also mean that there is no single company that sets standards for goods and services associated with this market. As a result, the quality of the products can be very different, although prices differ. This means that goods with a high quality can be offered together with similar products that are extremely inferior. Industrial guard dogs, which focus on quality as the key to the reputation of industry in general, the liqueurs are unhealthy.