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:

(1) There are many market players, namely 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.

(2) The object of the market is homogeneous, that is, there is no difference between products, and the buyer has no special preference for a specific seller. In this way, different sellers can compete on an equal footing.

(3) The total production resources can flow completely freely, and each manufacturer can freely enter or exit the market according to his own wishes.

(4) Adequate 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.

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.

However, a perfectly competitive market also has its own characteristics. For example, indiscriminate products make consumers lose their freedom of choice; The lowest average cost of each manufacturer does not necessarily make the social cost the lowest; Small-scale manufacturers have made major technological breakthroughs in physics. In the realization of economic life, perfect competition is rare. Generally speaking, competition will inevitably lead to the formation of monopoly.

Second, completely monopolize the market.

Complete monopoly market, also known as monopoly market, refers to a market completely controlled by one enterprise.

Conditions for the existence of a completely monopolized market:

(1) The seller is the only one without a branch, but there are many buyers.

(2) Due to various conditions such as technology patents and exclusive rights, other sellers cannot enter the market.

(3) The market object is unique and irreplaceable.

Although complete monopoly is a special economic situation, its existence still has its inevitability.

1, the requirement of scale economy is to become a "natural monopoly" industry.

2, the monopoly of some special resources is also easy to form a complete monopoly.

3, the government's franchise or compulsory will form a monopoly.

The formation of complete monopoly market price and its operating effect;

In a completely monopolized market, because there is only one owner, the seller can manipulate the price. The manipulated price must be higher than the actual price. Because a monopoly enterprise, as a price maker, knows that not selling more than one unit of products will lead to a price drop, which enables it to control the price by limiting production, so as to keep the price at a higher level and obtain the maximum profit.

Generally speaking, the operation of a completely monopolized market is harmful to the social economy. Because: 1, because the monopoly price is higher than the competitive price, consumers will spend more on the same use value than in the competitive market. 2. Because a completely monopolized market can't make two producers produce on the best scale, it will waste resources. 3, monopoly manufacturers can rely on monopoly power to obtain excess profits for a long time, unfair distribution.

But not all complete monopolies are harmful. For example, some complete monopolies, especially some public utilities monopolized by the government, are not aimed at pursuing excess profits. These public utilities often have large investment, long cycle and low profits, but they are necessary for economic development and people's lives. Government monopoly will produce external benefits and bring benefits to society. Perfect competitive market and complete monopoly market are extreme types in the market. The common market types in economy are monopoly and competition in different degrees, that is, monopolistic competition market and oligopoly market.

Just add some examples later, don't expect yourself to be completely motionless ~ it's easy to repeat with other students ... I hope to adopt it ~