Definition
- Identical products
- Identical products means every firm sells the same good, so buyers have no reason to pay one firm more than another.
Example
Can you think of an example of identical products?
Wholesale buyers cannot tell one Lincolnshire grower's potatoes from another's: the same variety, graded to the same size and packed in the same sacks. Nothing about any one grower's crop is worth paying extra for.
Test yourself
Can you name the four conditions of perfect competition?