Question

Perfect Competition Market is:
(a) Real Position of Market
(b) Imaginary Position of Market
(c) Both (a) and (b)
(d) None of these

Answer 1

Answer:

a real position of market is more important than any thing

Answer 2

A perfect Competition Market is the imaginary position of the market.

What are the reasons for perfect competition market is the imaginary position of the market?

• Minimum buyers and sellers- In a perfectly competitive market, there are fewer buyers and sellers
• Lack of knowledge- The buyers and sellers have less knowledge about market conditions
• Differences in Price- The price of any product depends upon the brands, government policy, and trade barriers
• Non-Price competition exists- A large amount of money are spent on advertisement so that more customers connected with the products