top of page

Economics explained

Category:

Market structures

Perfect competition

Perfect competition

👑 Economics Revision Notes

The secret to scoring awesome grades in economics is to have corresponding awesome notes.
 
A common pitfall for students is to lose themselves in a sea of notes: personal notes, teacher notes, online notes textbooks, etc... This happens when one has too many sources to revise from! Why not solve this problem by having one reliable source of notes? This is where we can help.
 
What makes TooLazyToStudy notes different?
 
Our notes:
​
  • are clear and concise and relevant
  • is set in an engaging template to facilitate memorisation
  • cover all the important topics in the O level, AS level and A level syllabus
  • are editable, feel free to make additions or to rephrase sentences in your own words!

    Looking for live explanations of these notes? Enrol now for FREE tuition!


Perfect competition has the following characteristics:

A perfectly competitive market has many firms producing the same (ie homogeneous) goods or services.

Under perfect competition producers and consumers have all the information they require – they have 'perfect knowledge' of the market.

There is complete freedom of entry into and exit from the market.

The price and level of output under perfect competition tends towards the equilibrium point. Producers attempting to sell at a higher price will not sell anything, and producers attempting to sell as a price below equilibrium would obtain 100% market share.

The demand 'curve' is horizontal – it is 'perfectly elastic'.

bottom of page