A perfect competitive market is characterised by ________.

homogeneous product

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large number of buyers and sellers

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perfect mobility of factor of production

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all of the above

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Solution

The correct option is D all of the above
Perfect competition is a type of market where there are large number of buyers and sellers due to which no individual unit is able to influence the price of the product and the firms have to quote the price that prevails in the market. The market deals in homogeneous product which are identical in nature due to whichthere is perfect mobility of factor of production.

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