\fSECTION READING STUDY GUIDE 1 What Is Perfect Competition? - Before You Learn ed There are many - Now You Will Learn Perfect competition factors that aect supply and demand which is the ideal by which economists measure all determine equilibrium market price. market structures. Independent Buyers and sellers each act Standardized independently Knowledgeable In perfect nobody is Everybody knows competition the banding what's available, things sold in the together to and how to get it. market are influence prices There's no 'secret functionally pricing.' identical "commodity" Characteristicsof Perfect Competition Enter/Exit Many Many buyers Easy access to and sellers enter or leave Nobody has extra the market. buying or selling Low barriers power over the market. to entry. Everyone has to accept the price avaliable; they are all "Price Takers."Economics Reading Study Guide 43 Chapter 7: Market StructuresCharacteristic of Perfect Competition Corn Beef Many buyers and sellers Check! Check! Standardized product Check! Check! Freedom to enter and leave the market Check! Check! Independent action NOPE! NOPE! Well-informed buyers and sellers Check! Check! 5. Complete the chart. Check the characteristics that each market has at all times. 6. Which characteristic is sometimes missing in both markets? 7. How does government affect competition in the corn market