Question

06
Explain the
meaning of perfect Competition.illustrate the
mechanism of Price
determination, under Perfect Competition .​

Answer 1

Explanation:

In perfect competition, the price of a product is determined at a point at which the demand and supply curve intersect each other. This point is known as equilibrium point as well as the price is known as equilibrium price. In addition, at this point, the quantity demanded and supplied is called equilibrium quantity.