Question

What do you mean by perfect competition market? Explain.

Answer 1

Answer:

Perfect Competition market is that type of market in which the number of buyers and sellers is very large, all are engaged in buying and selling a homogeneous product without any artificial restrictions and possessing perfect knowledge of the market at a time.

It's characteristics are as follows :-

Large Number of Buyers and Sellers

Homogeneity of the Product

Free Entry and Exit of Firms

Perfect Knowledge of the Market

Perfect Mobility of the Factors of Production and goods

Absence of Price Control

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Answer 2

A perfect competition market is a market where competition is largest among the sellers.

What are the characteristics of a perfect competition market?

• There are many buyers and sellers are present in this market
• Many firms easily enter or exit in this market
• In a perfect competition market the price is not determined by the government
• The products are transported from one place to another without any cost
• There is no advertising cost in this market