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Although very few industries meet every characteristic of perfect competition, the perfectly competitive model is important because it sets the standard for efficiency that is used to measure performance in other industries. The extent to which an industry fails to meet the criteria for perfect competition is an indicator of how much it fails to efficiently use and allocate resources.
In this Discussion, you will identify an industry and one or more of its characteristics that fail the test of perfect competition. You will explain the implications in terms of output and pricing decisions.
To prepare for this Discussion:
Post a 150- to 225-word (2- to 3-paragraph) explanation of perfect competition at the industry level. In your explanation, do the following:
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