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    What are the limitation to a perfect competition
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    There is a few which could be mentioned.

    - Firms sell homogeneous products.
    - Firms make normal profits. Therefore unlike a monopoly setup, firms may not invest in R&D. Further to this, firms may not innovate under perfect competition because they have no incentive to do so - they will only make normal profits and have no influence over the price.
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    - Also there are many firms in the industry none of - which is large enough to influence the price
    - firms are price takers which means that producers face a perfectly elastic demand
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    thank you
 
 
 
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