If the government were to decide to limit the number of propane distributors to a handful of firms, would the propane-distribution industry still satisfy the characteristics of perfect competition? Explain.

Pure competition is really a conceptual monetary system for which real level of competition or sellers doesn't at all exists while multiple providers (and customers) all available as in market as soon supplying its same goods at fair value. Like a corollary, the provider has to have a small share that has little impact regarding current prices.

Supplied to the market is rated the top industry setting since that greatest productively utilizes financial tools. As a corollary, straight antagonism also was emphasized.

Only within trade, there is still a big buyers and sellers. Those that own chaotic, little, or moderate firms are vendors. Yet, an insufficient volume from both buying and selling maintains that market situation chains there in industry healthy. i.e., a customer would simply change enterprises to hunt for such item, while a vendor gains from such a huge pool among purchasers.