Question

how does price of a commodity is determined under perfect competition? also give sutaible diagram ​

Answer 1

A single firm, under perfect competition, then takes the market price as given and adjusts its output so as to obtain maximum profits. Now the interaction between these two forces of demand and supply determines price in the market.

Answer 2

Ello user !!!!!

Here is your answer,

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In perfect competition, the market price of products is determined by taking into account two market forces, namely market demand and market supply.

In perfect competition, the price of a product is determined at a point at which the demand and supply curve intersect each other.

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