Perfect Competition is the idealized state of a market economomy where no producer can affect price.
As a result of watching this playlist you should be able to:
- Know the meaning of the following terms: perfect competition, normal profit, and accounting profit.
- Understand why perfectly competitive firms can make profits or losses in the short run.
- Appreciate why in the long run perfect competition tends to lead to firms breaking even.
- Be aware of the importance of profit in a market system.
- Understand the importance of the perfectly competitive system in understanding the role of markets in society.
