Answer to Question #170892 in Microeconomics for XOY

Question

When monopoly market turns into a perfectly competitive market?

Answer 1

The monopoly market turns into a perfectly competitive market when four conditions for perfect competitive market satisfied:

1) many firms produce identical products;

2) many buyers are available to buy the product, and many sellers are available to sell the product;

3) sellers and buyers have all relevant information to make rational decisions about the product being bought and sold;

4) there is free entry and exit into and out of the market.