Question

Why perfect competitive market structure considered to be economically efficient?

Answer 1

Heya...

Perfect market competition is that one in which there are...

Large no of buyers and sellers...

Products are homogenous...

Prices are fixed by market forces....

Seller cannot influence price according to them....

Consumers have knowledge about every product...

Freedom to entry or exit for new firm....


So it is the best and efficient for the economy...

** It will not lead any hard competition...

** Consumers will not be exploited....

** New firms can easily go and come...

Answer 2

here is ur ans mate..hope it helps