Under Perfect Competition , price is uniform because we assume that _____ cost does not exist
Answers
Answer:
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.
Buyers have complete or "perfect" information—in the past, present and future—about the product being sold and the prices charged by each firm.
Resources for such a labor are perfectly mobile.
Firms can enter or exit the market without cost.
Answer:
selling cost
Explanation:
There are no monopolies under a scenario of perfect competition. A few essential traits of this type of structure include:
All businesses sell the same thing (the product is a commodity or homogeneous).
Every company is a price taker (they cannot influence the market price of their products).
In a condition of perfect competition, buyers and sellers are numerous and knowledgeable. Thus, the vendor need not exert any effort to market his goods. Therefore, under perfect competition, there are no selling costs.
Due to the uniform pricing of homogeneous goods under perfect competition and the lack of near replacements for monopoly goods in the market, businesses engaged in perfect competition avoid incurring selling costs.
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