A situation of large number of firms producing similar goods is termed as ________.

perfect competition

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monopolistic competition

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pure competition

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oligopoly

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Solution

The correct option is A perfect competition
The basic condition of perfect competition is that there must be a large number of sellers or firms. Homogeneous Commodity is the second fundamental condition of a perfect market. The products of all firms in the industry are homogeneous and identical.

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Similar questions

Explain the implications of the following features of perfect competition:

(a) large number of buyers and sellers

(b) freedom of entry and exit to firms

Any group of firms producing similar or related goods make up an ___

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