username3896148
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Why are perfectly competitive markets rare?
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stephsmhb
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I think it's because in reality there are very few markets where all firms are price takers and sell homogenous products, they always try to differentiate in some way e.g through marketing. Also in real life some firms will be bigger than others and with that increased size comes economies of scale and sometimes monopsony power when buying from suppliers, this will decrease their costs and allow them to be more competitive than smaller firms. For this not to happen all firms have to be the same size OR the size of the firm has to have no impact on competitiveness, neither of these are likely in the real world.
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