Question

Select all that apply. Select the items that describe perfect competition. identical products many sellers cannot influence price price maker

Answer 1

Characteristics of perfect competition are as follows :

1) There are many buyers and sellers

2) Homogeneity of products

3) Free entry and exits of firms.

4) perfect knowledge of the market.

5) Absence of price control.

6) Perfect mobility of the factors of goods production.

Answer 2

Open Entry and Exit products

This means that the sellers are free to enter and leave the market as per their choice.

They can sell any kind of product but need to ensure that the prices are correct and least too or else they will not get potential buyers.

So they need to be a bit careful on this aspect.