This discussion is designed to see if you can apply economics to real life situations.Please use your own personal experiences to answer the following discussion questions. If you do not have personal experiences, you can share examples of your family and/or friends. This will show that you are able to make connections between what you learn in this class and what you encounter in the real world.

Now it is time to reflect on what you've learned in Module 04 and apply them in your daily lives.

Your participation in this Discussion demonstrates the following learning objectives:

• Describe where does perfect competition exist and why.
• Discuss how does perfect competition affect your daily lives.

What to do:

After reading the perfect competition chapter, share with us what is a perfectly competitive market and how it works.

Please use specific examples in your discussion post to answer the following questions:

1. What type of business tend to operate under perfect competitive market and cannot set the price of its products? Please use economic terminology to describe the characteristics of your selected business.
2. As a consumer, how do you benefit from this type of business? Please share your own experiences with specific examples and explain your answer in terms of economics.
3. Other than the benefit and cost analysis, why this type of business does not spend much money on advertising? (Hint: It is related to one of the characteristics of this type of business.) Please provide specific examples in the real world and explain your answer in terms of economics.