| A | B |
|---|
| Perfect Competition | a market structure in which a large number of firms all produce the same product and no single seller controls supply or price |
| Commodity | a product that is considered the same no matter who produces or sells it |
| Barrier to Entry | any factor that makes it difficult for a new firm to enter a market |
| Imperfect Competition | a market structure that fails to meet the conditions of perfect competition |
| Start-up Costs | the expenses a new business must pay before it can begin to produce and sell goods |
| Entry Barriers | Start-Up Costs & Technology |
| Examples of Perfect Competition Market Products | tomatoes, stock exchange, gasoline |
| Four Conditions for Perfect Competition | identical products, many buyers & sellers, free market entry & exit and informed buyers & sellers |
