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Questions
Give two characteristics of perfect competition.
State two characteristics of perfect competition.
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Solution
- There are a very large number of buyers and sellers.
- Products sold by different sellers are homogenous.
- Firms are free to enter or exit the industry (or market).
- Buyers and sellers have perfect knowledge about the market conditions.
Notes
Students should refer to the answer according to their questions.
RELATED QUESTIONS
Which two forms of market earn normal profit in the long run?
Match the following and select the correct option:
| Column I | Column II | ||
| (i) | Perfect competition | (A) | Differentiated Products |
| (ii) | Monopoly | (B) | Few large firms |
| (iii) | Monopolistic Competition | (C) | Single seller |
| (iv) | Oligopoly | (D) | Homogeneous products |
A market where homogeneous products are sold with no control over price by an individual firm or a buyer is ______.
Which one of the following is NOT found in a perfectly competition market?
Give three points of difference between perfect competition and monopoly.
State two important characteristics of monopoly.
Identify the market form for the following:
Telecom industry in India.
Identify the market form for the item given below:
A single buyer
To which market is price discrimination relevant?
What does perfectly elastic demand curve faced by a competitive firm indicate?
