Topic > Advantages and Disadvantages of Perfect Competition

The goods and services provided by each seller are differentiated based on cuisine, skill, ingredients used, and more. Each seller sets prices based on production costs, with little regard for other competitors. Access to information, such as prices, menus and reviews, is high, but limited by the fact that value can only be determined after the experience. An oligopolistic market has a small number of sellers who dominate market share and therefore the barriers to entry are high. These sellers are highly competitive and do not act independently of each other. Access to information is limited, so sellers can only speculate on the actions of their competitors. Sellers will take advantage of competitors' price changes to increase market share. An oligopoly is likely to occur in the sugar refinery, to which raw sugar is transported from overseas sugar mills. Additionally, sugar refineries are expensive to operate due to machinery and transportation costs, so barriers to entry are high. There are likely to be a small number of companies operating sugar refineries spread across the country