Perfect Competition

This study guide covers perfect competition within the context of market structures, including monopoly, monopolistic competition, and oligopoly. It details the characteristics of perfect competition, emphasizing firms as price takers selling identical products with low barriers to entry/exit. The guide explains short-run profit, loss, and shutdown scenarios using side-by-side graphs, and illustrates long-run equilibrium where firms achieve allocative and productive efficiency. Finally, it discusses market adjustments from short-run to long-run and vice-versa due to demand shifts, highlighting the concept of zero economic profit in the long run.