Question

What conditions make a market perfectly competitive? A market is perfectly competitive if: 

 

(i) it has many buyers and one firm, which produces a product with no close substitutes, with barriers to new firms entering the market. 

(ii) it has many buyers and many sellers, all of whom are selling differentiated products, with no barriers to new firms entering the market. 

(iii) it has many buyers and a few sellers, all of whom are selling identical products, with no barriers to new firms entering the market. 

(iv) it has many buyers and a few sellers, all of whom are selling differentiated products, with barriers to new firms entering the market. 

(v) it has many buyers and many sellers, all of whom are selling identical products, with no barriers to new firms entering the market.