Question

The condition for perfect competition is:
(a) Large number of buyers and sellers, free entry and exit
(b) Homogenous product
(c) Both (a) and (b)
(d) None of these

Answer 1

Explanation:

ur answer is option C) i.e both the option A and B

Answer 2

The condition for perfect competition is a large number of buyers and sellers, and a homogenous product.

What are the conditions for perfect competition?

• The buyers and the sellers have to know the price and the quality of the product in perfect competition
• The firms are present in large number in perfect competition
• The firm can easily enter and exit without any cost in perfect competition
• There is no role of government to determine the price of any product
• In perfect competition, buyers can easily accept the price in the market