What makes the market of personal computers a good example of perfect competition and what you think...

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What makes the market of personal computers a good example of perfect competition and what you think are the most important competitive advantages in such a perfectly competitive market? One page, double spaced, Apa format, using this link as a reference (Its about Dell). Thank you.( http://cloisters.hubpages.com/hub/Dells-Competitive-Advantage)

Robert · Accepted Answer

What makes the market of personal computers a good example of perfect competition and what you think are the most important competitive advantages in such a perfectly competitive market? One page, double spaced, Apa format, using this link as a reference (Its about Dell). Thank you.( http://cloisters.hubpages.com/hub/Dells-Competitive-Advantage)
In a perfect competitive market, there are some typical features:
· Large no of buyers and sellers-for home computers the market is very large and so are the no of sellers. The no of firms selling home PCs is large enough that no o1 seller can command its own unique price; each firm sells at a price that is derived by price war and there is no scope for any seller to price his product at higher price. Such a price diverts consumers to another brand/seller as there is ‘little’ difference in products across firms.

What makes the market of personal computers a good example of perfect competition and what you think are the most important competitive advantages in such a perfectly competitive market? One page,...

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