Answer 1

 ​In a perfectly competitive market, the product of each and every firm is a perfect substitute to others’ products in terms of quantity, quality, colour, size, features, etc. Also, in a perfectly competitive market, the buyers are aware of the prevailing market price of the product at different places and the sellers are aware of the prices at which the buyers are willing to buy the product. Thus, due to homogenous goods and perfect knowledge about the market factors, there is a single price in perfect competition which has to be accepted by all the market players.