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    Perfect competition

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    Discuss perfect competition and long-run equilibrium. Provide detailed descriptions, definitions and concrete examples of your findings. Additionally, how does the proliferation of global trade and competition contribute to markets moving more away from market-possessing power to more perfect competition? Lastly, when does marginal social benefit equal marginal social cost and why?

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    Perfect competition

    Discuss perfect competition and long-run equilibrium. Provide detailed descriptions, definitions and concrete examples of your findings. Additionally, how does the proliferation of global trade and competition contribute to markets moving more away from market-possessing power to more perfect competition?
    Perfect competition describes markets in which no firm is large enough to set the price of the product. The product in a perfect competition is homogeneous. There are several condition for perfect competition. The transactions costs are not there and there is perfect information about prices. In addition, in the long run the factors of production are assumed to be mobile. There are no barriers, either to entry or to exist. There is a very large number of buyers and sellers. On the supply side ...

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