Assumptions about the theory of supply and demand
In the context of markets, “perfect competition” means:
- all participants have complete information,
- there are no entry or exit barriers to the market,
- there are no transaction costs or subsidies affecting the market,
- all firms have constant returns to scale, and
- all market participants are independent rational actors.
supply_and_demand_theory_assumptions.txt · Last modified: 2019/10/19 09:22 (external edit)