state the three main features of perfect competition
Answers
Answer:
Firms are said to be in perfect competition when the following conditions occur: (1) many firms produce identical products; (2) many buyers are available to buy the product, and many sellers are available to sell the product; (3) sellers and buyers have all relevant information to make rational decisions about the product being bought and sold; and (4) firms can enter and leave the market without any restrictions—in other words, there is free entry and exit into and out of the market.
Answer:
1)many firms produce identical products
2)many buyers are available to buy the products and many sellers are available to sell the products
3)sellers and buyers have all relevant information to make rational decisions about the product being bought and sold