Important Stuff

Homogeneous products: Identical products ( carrots ).

Price takers: Homogeneous business have to follow price of others companies products, or no one will buy.

Productive efficiency: Minimise costs, Accept market prices, Development.

Allocative efficiency: Using resources completely, due to competition for materials.

Homogeneous products -- Easy entry -- Full information

                             =Strong competition=

                    -Price takers making normal profits-

Technically Efficiency --…