China Telecom is a monopoly, A &；; T company was forced to split by the government, and the monopoly phone bill remained high. a &； T company's low phone bill shows that the government should limit monopoly and promote competition. China Oil Company is a monopoly enterprise, but ExxonMobil, a fortune 500 giant, wants to compete with 30 other peers in the same market. As a result, China Oil Company's oil price is the highest in the world, even creating an oil shortage while exporting in large quantities, and receiving huge financial subsidies from the state. It can be seen that the government should limit monopoly and promote competition.

Perfect competitive market, also known as pure competitive market, refers to a market where competition is completely free from any obstacles and interference. A perfectly competitive market should meet the following conditions: there are many market subjects, that is, there are a large number of buyers and sellers. There are a large number of sellers, and each seller has a small share in the market. The change of individual buyer's sales volume does not affect the market price of goods; At the same time, no one among many buyers can influence the market price with the change of their own needs.

Second, the objects of the market are homogeneous, that is, there is no difference between products, and the buyer has no special preference for a particular seller. In this way, different sellers can compete on an equal footing. The total production resources can flow completely freely, and each manufacturer can freely enter or exit the market according to his own wishes.

Third, sufficient information, that is, consumers fully understand the market price, performance characteristics and supply status of products; Producers are fully aware of the prices of inputs, finished products and production technologies. The market closest to the above conditions is the agricultural product market. Therefore, the agricultural product market is generally called a perfectly competitive market. Price formation and operation effect in a perfectly competitive market: in a perfectly competitive market, the market price is determined by the competition between the supply and demand sides, and individual buyers and individual buyers are only the recipients of this price. In other words, at the price specified by the market, the market demand for a single product is unlimited, and the supply of products to a single buyer is also unlimited.

4. Perfect competition market is an ideal market type. Because in this market situation, price can give full play to its regulatory role and realize the long-term equilibrium of market price = marginal cost = average cost. From the perspective of the whole society, total supply equals total demand, and resources are optimally allocated. A perfectly competitive market also has its own characteristics.