20/07/2026
Perfect Competition- I | Asrarul Islam Chowdhury | Alape Arthanity | Episode 62| Kazi Farms | Deepto News
producer: Md Shahidur Rahman
http://www.youtube.com/-DeeptoTV
00:00-00:24
Today’s Topic:
A. Introduction to perfect competition
00:25-01:58
A. Why markets?
01:59-05:10
A. Assumptions of perfect competition
B. Outcome of perfect competition
05:11-08:56
A. What is competition? A.B.C.
B. Equal and unequal competition
08:57-12:33
A. Market share
B. Zero market share
C. Independent buyers and sellers
12:34-13:57
A. Perfect competition is a benchmark only.
13:58-14:12
A. Next Week: Remaining assumptions of perfect competition
14:13-14:44
End credit
EPISODE SUMMARY
What did we discuss today?
A. Introduction to Perfect Competition
Perfect competition is the first market we encounter in economics. It is therefore good if we understand what perfect competition is, and ow it came to be.
B. Why Markets?
Markets are the eyes through which economics views its world. Markets are the institution through which we allocate resources among buyers and sellers.
C. Assumptions of Perfect Competition:
First: Many buyers and many sellers.
Second: Homogenous Product
Third: Perfect Information
Fourth: Free Entry and Free Exit
If the above assumptions hold, then the final outcome will be free of influence. Influence can be internal (from within the market from buyers and sellers), or external from an outside institution.
D. What is Competition?
Competition is when buyers and sellers compete for the available X a market offers on a certain day. If that amount is less, then market price will be high. If that amount is high, then market price will be low. If there is internal influence, then the market price will be influenced.
Equal and Unequal Competition: Unequal competition arises when either buyers or sellers can influence the market.
Independent Buyers and Sellers: Buyers and sellers cannot be able to collude. If they can, they influence the market price.
Market Share: How much will a buyer buy or a seller sell? If this is insignificant to the total market, then market share is zero, or near to zero. This is the core assumption of perfect competition. With zero share or near to zero share, no buyer(s) or seller(s) can influence the market outcome with their buying and selling decisions.
E: Why should we study Perfect Competition?
Perfect Competition will almost never exist. Yet, we study it as a benchmark through which we compare other markets and other outcomes.
F: Next Episode:
Homogenous products, perfect information, free entry & free exit assumptions.
Alape Arthanity Team
Deepto TV
Kazi Farms
#আলাপেঅর্থনীতি