Market Structure. Market Structure. The nature and degree of competition among firms in the same industry. Perfect Competition. Market structure characterized by a large number of well-informed independent buyers and sellers who exchange identical products. A Theoretical idea.
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Q: So why does perfect competition serve as a theoretical market structure?
A: Its advantages serve as a yardstick or example for other structures to be measured by.
Doesn’t matter if they are positive or negative: they are considered market failures, because their costs and benefits are not reflected in the market prices that buyers and sellers pay.
and Public GoodsWhat two market failures does the government have the ability to correct?