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प्रश्न
Statement (1): Perfect competition is a hypothetical market situation.
Statement (2): Under perfect competition, the government decides the prices of the products and services.
विकल्प
Statement 1 is true and Statement 2 is false.
Statement 2 is true and Statement 1 is false.
Both the statements are true.
Both the statements are false.
MCQ
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उत्तर
Statement 1 is true and Statement 2 is false.
Explanation:
- Statement (1): Perfect competition is regarded as a theoretical or hypothetical market situation because its stringent conditions such as absolute product homogeneity, complete knowledge, and hundreds of identical sellers are rarely found in the real world.
- Statement (2): Under perfect competition, the government does not establish or decide market prices; rather, prices are decided solely by market forces such as aggregate demand and supply, forcing individual firms to act as price takers.
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