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प्रश्न
Explain any four features of perfect competition
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उत्तर
According to Mrs. Joan Robinson, “Perfect competition prevails when the demand for output of each producer is perfectly elastic”. The price of a commodity in perfect competition is determined by the market forces of demand and supply. Both, buyers and sellers have perfect knowledge of market conditions.
A close example of a perfectly competitive market could be the local flower market at Dadar (Mumbai), petrol pumps across the country etc.
1. Large Number of Sellers And Buyers:
In a perfectly competitive market, there are large number of sellers and buyers. Each seller and each buyer form a negligible part of the entire market. Therefore, no single seller or buyer is in a position to influence the market price. Both, sellers and buyers are said to be “price takers” under perfect competition.
2. It Sells Homogenous Product: All the firms in perfectly competitive market sell the same (homogeneous) product. It means their products are exactly identical in terms of size, shape, design, taste, colour, weight etc. Thus, all products are perfect substitutes for each other.
3. Free Entry And Exit: In perfect competition, there are no barriers on entry and exit of the firms. Any firm can enter or exit the market at its own will. If there is a hope of profit, a new firm will enter the market and if there are chances of loss, an existing firm may leave the market
4. Every Factor of Production Is Perfectly Mobile: There is perfect mobility of factors of production under perfect competition. Labour and capital are mobile; not only geographically but also occupationally (i.e. they can be put to any use). So, each factor input is optimally utilized and producer does notface any problem in production.
