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| 1. |
Features of perfect competition market |
| Answer» An essential aspect of perfect competition is the absence of any monopolistic\xa0element. These are the three essential features of perfect competition:\tThe number of buyers and sellers in the market is very large. These buyers and sellers compete among themselves. Due to the large number, no buyer or seller influences the\xa0demand\xa0or supply in the market.\tThe commodity sold or bought is homogeneous. In other words, goods produced by different firms are identical in nature.\tFirms can enter or exit the market freely.<br>These are the three essential features of perfect competition:\tThe number of buyers and sellers in the market is very large. These buyers and sellers compete among themselves. Due to the large number, no buyer or seller influences the\xa0demand\xa0or supply in the market.\tThe commodity sold or bought is homogeneous. In other words, goods produced by different firms are identical in nature.\tFirms can enter or exit the market freely. | |