Advertisements
Advertisements
Question
Explain three features of Perfect competitive market.
Answer in Brief
Advertisements
Solution
- Homogeneous products: In this market, enterprises sell homogeneous or identical products. Consumers perceive no difference in products given by different merchants on the market.
- Free entry and exit: There are no obstacles preventing new firms from entering the market. Similarly, there are no obstacles to leaving. Firms have the option to exit the market if they are unable to generate enough revenue to cover their costs.
- Large numbers and sellers: In this market, there exists a significant number of both buyers and sellers. No buyers or sellers have the power to influence the demand and supply, respectively.
shaalaa.com
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
Which of the following is the least competitive market?
Give two characteristics of perfect competition.
Define product differentiation.
Identify the market form of the following:
Goods sold are homogeneous.
Identify the market form for the following:
Railways in India.
Identify the market form for the following:
Perfectly elastic demand.
State the market form of the following commodity.
Automobiles
State the market form of the following commodity.
Fighter Aircrafts
Give an example of monopoly.
Explain any four features of perfect competition.
