Question

merits and demerits of a perfect competition market??

Answer 1

Merits of perfect competition : 1) Proper knowledge of product among consumer. 2) Due to homogeneous product less promotional cost. 3)Less competition. 4)  no barrier to entry or exit. 5) no monopoly .

Demerits of perfect competition:1)no variety in products. 2) seller can't earn more than normal profit.3) In this competition producer not take initiative of modification or  new invention .