What are two essential conditions for perfect competition maret equilibrium?
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Perfect competition is the market in which there are large no of producers and sellers in the market of same homogeneous products having no price control....
Two essential conditions of market Equilibrium...
"" MR = MC...
Means, the total revenue if the firm gets equal to its cost of production..
"" Product should be homogeneous..
This is essential to control the price and no authority to individual to change its price...
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Pure or perfect competition is a theoretical market structure in which the following criteria are met:
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").
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).
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.