What is a perfect competition?
1 Answer
Nov 30, 2015
Perfect competition is a market form in which there are a large number of buyers and sellers.
Explanation:
The following conditions are to be full filled by a market form for it to be called as a perfectly competitive market.
1 There are large number of buyers and sellers.
2 All the firms are producing homogeneous product.
3 Single price is ruling in the market.
4 The distinction between firms and industry is there.
5 Buyers and sellers possess perfect knowledge.
6 There is free entry and exit of firms.
7 There is no transport cost.
8 There is no government control.
