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Study Notes

Perfect Competition - Economic Efficiency

Level:
A-Level
Board:
AQA, Edexcel, OCR, IB

Last updated 2 Jul 2018

In perfect competition, market prices reflect complete mobility of resources and freedom of entry and exit, full access to information by all participants, homogeneous products, and the fact that no one buyer or seller, or group of buyers or sellers, has any advantage over another.

Perfect competition can be used as a yardstick to compare with other market structures because it displays high levels of economic efficiency.

Perfect competition and economic efficiency

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