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प्रश्न
Explain the following feature of perfect competition:
Large number of buyers and sellers
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उत्तर
There are a large number of buyers and sellers of the commodity. The number is so large that none of them can influence the prevailing market price. The words 'large number' imply that the number of sellers is so large that a single seller's share in total market supply of the product is insignificant. Similarly, a single buyer's share in total market demand is insignificant.
The implication of this feature is that neither a single seller nor a single buyer influences the market price on his own. No individual seller can influence the market price by reducing or raising its own supply. Similarly, no single buyer can influence the market price by changing his demand. This makes the sellers as well as buyers as price-takers.
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संबंधित प्रश्न
Homogeneous product is a feature of this market.
- Monopoly
- Monopolistic competition
- Perfect competition
- Oligopoly
State with reason whether you agree or disagree with the following statement:
The seller is a price taker in perfect competition.
Homogeneous product is a feature of this market.
- Monopoly
- Monopolistic competition
- Perfect competition
- Oligopoly
______ is relevant to perfect competition.
The following diagram represents the demand curve of a firm under ______.
Homogeneous products are sold under ______.
A differentiated product has ______.
Firms under ______ are free to enter or leave the industry any time.
In a perfectly competitive market, an individual firm is called a price taker because ______.
Which assumption of perfect competition prevents firms from gaining advantage by advertising?
