Question

While it is difficult to identify a real-world market that meets the textbook definition of perfect competition, there are many real-world markets in which price-taking behavior is observed and in those cases the model is quite valid. Give an example of a near-perfectly competitive firm. If you were managing that firm, how would you prepare for the Post-Pandemic World?

Answer 1

Perfectly competitive : It can be defined as a market where we have large number of sellers as well as large number of customers .

Eg , A mobile manufacturing company is in a perfectly competitive market. As there are number of sellers and large number of buyers as well like Apple, samsung, honor, google ,blackberry and many more.

Prepare for the post pandemic world

1. Lower the prices : I would definitely lower the prices and make sure to provide good quality at whatever possible charges because people have suffered alot in the pandemic and will not have that much money to afford expensive phones.

2. Digitally active : To keep the products digitally active that means a person can buy it online with the comfort of sitting in a home because there are possibilities that people might not prefer going out even after pandemic gets over.

3. Advertise : Keep advertising a lot about the product and its features in order to tempt people to buy it.

4. Safety : I shall provide the customer with the assurity of safety in respect to health so that they have no issues in buying it .