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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
Homogeneous product is a feature of this market.
- Monopoly
- Monopolistic competition
- Perfect competition
- Oligopoly
Homogeneous product is a feature of this market.
- Monopoly
- Monopolistic competition
- Perfect competition
- Oligopoly
In perfect competition the sellers are selling ______ products.
______ is relevant to perfect competition.
The following diagram represents the demand curve of a firm under ______.
In which market form, marginal revenue is equal to price?
______ goods refer to those products which are identical in quality, shape, size, color, etc.
Explain the following feature of perfect competition:
Homogeneous products
Which assumption of perfect competition prevents firms from gaining advantage by advertising?
