exemple of perfect competition in economics?

Question

could someone give me an example please?

Answer 1

Perfect competition model requires identical products, that is commodities, a large number of firms, consumers with perfect knowledge of prices, and no government subsidies. I can't think of any that meet all the requirements. Many of the industries that we think of as competitive are actually operating as "monopolies" for their brand and competing with close substitutes not identical products. Some farm product might qualify were it not for government subsidies. Steel and other metals, chemicals, coal, etc would come close to perfect competition when there are enough producers.

Answer 2

Sorry, no can do. Perfect competition is an abstract model, not a reality. Most markets in the U.S. are competitive, but finding a perfectly competitive one would be like trying to find a perfect person...

Answer 3

Perfect competition, or a perfect competative market can exist, and our own nation was close to this model over a century ago.

Perfect competition allows businesses to freely compete minus all government intervention, regulations, and Taxations. including safety standards, and government subsidies (free handouts to companies)

1. Subsidies:
Gov't bails out Chrysler by loaning billions of dollars to them in the 80's at the hypthetical expense of using GM and Fords money to do so. That very act punishes GM and Ford for being more efficient better managers of their company.

Result: Chrysler becomes competition again for ford and GM when it does not deserve to be in a perfect system.

2. Taxing Corporations:
This directly made GM and Ford less competative by taxing their profit for government use (bailing out Chrysler) thus leaving GM and Ford less competative and more vulnerable to Foreign Car makers (Japan - Nissan, Toyata.)
If gov't stopped taxing GM and ford 35% of their yearly proffits, GM and Ford our manufacturing sector wouldn't have problems by China and Japan.

3. Safety Standards / Regulations:
Gov't imposes strict regulations on all companies to have tools, equipment, and vehicles set to a certain high level of standard. These standards are often unnecessary and lobbied by large companies with aims to keep the little guy out - thus enabling monopolies and artificially keeping prices high. This hurts smaller companies from growing because they cannot afford top notch brand new equipment, machinery, and vehicles to operate - thus shutting them down.

Because of this, a great deal of "hypothetical" competition cant afford to even start a business.

Conclusion:
A perfectly level competative playing ground is one that eliminates all gov't intervention, taxations, subsidies, and taxation - allowing business' to compete against each other freely.