Two Resource Markets

LESSON 9 PERFECT COMPETITION VERSUS MONOPOLY

9-1

HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

Two Resource Markets

LESSON 9 PERFECT COMPETITION VERSUS MONOPOLY

9-2

HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

Conditions Necessary for Perfect Competition in a

Market1. A large number of buyers and sellers.

2. Resources or products offered by all sellers are identical (i.e., they are perfect substitutes).

3. No barriers to enter or exit the market; sellers can freely enter or leave.

LESSON 9 PERFECT COMPETITION VERSUS MONOPOLY

9-3

HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

Perfect Competition versus Monopoly