Economy, asked by omeir60691, 9 months ago

Perfect competition is no competition. How?

Answers

Answered by mrutyunjaypatra224

Pure or perfect competition is a theoretical market structure in which the following criteria are met: All firms sell an identical product (the product is a "commodity" or "homogeneous"). All firms are price takers (they cannot influence the market price of their product). Market share has no influence on prices.

Answered by Venomousgirll

Answer:

Because a firm under perfect competition can sell whatever amount it wishes to sell at the existing price. It only has to adjust its output and supply; there is no price competition in the market. Also, there is no commodity competition because all producers of a commodity are selling only homogeneous product; there is no product differentiation.

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