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Essay Details:
Essay text:
The PC model uses the following assumptions:
· Homogeneity ? Companies provide goods and services that are perfect substitutes--in other words, identical. Since product differentiation is absent, each company possesses only a small market share.
· Perfect and complete information - All companies and consumers know the prices set by all companies. Buyers know the nature of the product sold as well as the prices charged by each company.
· Equal access - Information is freely available with concern to technology, input prices, output price, and other factors that might affect production decisions...
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