Implications of homogeneous product under perfect competition
Answers
Answered by
5
Heya....
Perfect combination is that market in which there are large no of buyers and sellers and there is no control of any individual over prices....
One characteristic of perfect combination is ..homogeneous products and it's implications are as follows....
** Same product lead to same prices in the market...
** There is zero degrees of differentiation in homogeneous product that is perfect subditude of each product ...
** No market control exist...
** Prices remains minimum and consumer doesn't exploit...
Perfect combination is that market in which there are large no of buyers and sellers and there is no control of any individual over prices....
One characteristic of perfect combination is ..homogeneous products and it's implications are as follows....
** Same product lead to same prices in the market...
** There is zero degrees of differentiation in homogeneous product that is perfect subditude of each product ...
** No market control exist...
** Prices remains minimum and consumer doesn't exploit...
Answered by
1
Homogeneous product means that the buyer treat product of all firms in the industry as identical. Therefore the buyers are willing to pay only the same price for the products of all the firms in the industry. It also implies that no individual firm is in a position to change a higher price for its product.
Similar questions