Many Firms
The fact that there are many firms each firm to set prices without engaging in strategic decision making regarding the prices of other firms.
no entry/exit costs
In the long-run there are no entry/exit costs. There are many firms waiting to enter the market with their own product.
Decision making
each firm can independently set the price for its products. the firm doesn't worry about what its competitors will do becuase it cause little effect.
Market power
Each firm has some degree of market power. a firm can raise its prices without loosing customers and lower prices without retaliation from competitors.
Numeber market elasticity of product pricing
of firms Power demand differentiation power
Many low high elasticity High Price
(long-run) setter
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