Meaning and characteristics of perfect competition
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It takes the price as decided by the forces of demand and supply. No firm can influence the price of the product. Description: Ideally,perfect competition is a hypothetical situation which cannot possibly exist in a market. However, perfect competition is used as a base to compare with other forms of market structure.
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A Perfect Competition market is that type of market in which the number of buyers and sellers is very large, all are engaged in buying and selling a homogeneous product without any artificial restrictions and possessing perfect knowledge of the market at a time
its characters are following
1. Large Number of Buyers and Sellers:2. Homogeneity of the Product:
3. Free Entry and Exit of Firms
4. Perfect Knowledge of the Market:
5. Perfect Mobility of the Factors of Production and Goods
its characters are following
1. Large Number of Buyers and Sellers:2. Homogeneity of the Product:
3. Free Entry and Exit of Firms
4. Perfect Knowledge of the Market:
5. Perfect Mobility of the Factors of Production and Goods
shaileshmishra:
i hope it will help u to easily understand
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