00:01
So we are looking at a perfectly competitive market and the three examples are given of those that are normally used to give as examples for perfect competition.
00:15
So we have a farming community there with their commodities, the stock market as well as the fruit market.
00:22
So the features that are normally used for perfect competition is obviously things such as the many buyers and sellers, obviously.
00:34
And there's perfect information, there's homogeneous products, there's barriers to entry and exit.
00:42
So this is all aligned to having no one firm able to influence the price.
00:50
Okay, so that's basically what we normally have as characteristics of a perfect market.
00:57
So the question really is we need to name which characteristics of perfect competition that the markets that are given here might not have.
01:10
So when you look at farming commodities, we start off with farming commodities, we can actually tell that there are many buyers and sales.
01:21
Sellers of these farming commodities so we can actually put a tick on that.
01:26
When it comes to perfect information, not quite.
01:30
We don't have pieces of information because we do not have all consumers.
01:36
For example, we can not assume that they know exactly where to find the absolute, you know, corn that they would want or wheat for that matter.
01:48
And when it comes to homogeneous products, of course, this is not also absolutely correct because the reason why we have different grades for these commodities is because there are differences...