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Hello.
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So here, the question is that with no concern on the legality, if you're given a choice, which market structure? so either perfect competition or monopoly or the oligopoly of the monopolistic competition, will you choose? so we're going to choose here perfect competition.
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And the reasons behind choosing perfect competition are going to be, well, first, the firms in such a marketplace can enter and exit so there's no barrier.
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Second, there is perfect flow of knowledge in the consumers and sellers.
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So everyone has the information about the product, its price and quality.
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And then in perfect competition, there are large numbers of sellers and buyers and presence of many firms that sells homogeneous goods.
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And then there is no discrimination in buying and selling from anyone in the market.
01:00
And then in perfect competition, significant cost on transportation is going to be cheap...