The Chapter discusses the market structure known as perfect competition. The characteristics of perfect competition are homogeneous (identical product), easy entry, and large number of sellers. Use the internet to explore perfect competition in more detail. Above is the
FTC homepage. The FTC or Federal Trade Commission is a government agency charged with ensuring that competition is maintained in markets. See what studies the FTC has available and answer the following questions.
Questions
- Are there any studies on market power?
- What industries is the FTC investigating with respect to market power?
- What does market power mean?
- Would a firm in perfect competition have market power?
- If there are any studies available, download one and search it to see if mention is made of concentration indices or of perfect competition. If so, list how these are used.
