Question

which market form has the large number of producers? explain in detail​

Answer 1

Answer:

Perfect competition is a type of market where there are large number of buyers and sellers who deals in homogeneous product due to which no individual unit is able to influence the price of the product and the firms have to quote the price that prevails in the market because of the customer's knowledge about the price.

Answer 2

Perfect competition is the form of the market which has a large number of producers.

Explanation:

• The form of the market which has a large number of producers selling the same product is known as perfect competition. For example, Pepsodent, Close up, Colgate, etc. are examples of perfect competition for toothpaste.
• Under this type of market, consumers have a number of items to choose from.
• The prices of the products in this market remain steady and change together only as a result of the change in price made by one seller. Since a slight variation in prices could lead to a loss of customers, there is hardly a change in prices.