Question

Define a Perfect market. Explain any four features of a Perfect market.

Answer 1

• A perfect market is a market situation where there are large number of buyers and sellers dealing in a homogeneous product at a price fixed by the market. The goods are sold at uniform price and is fixed by the industry and not by any particular firm.
  

Its features are:

• There are very large number of buyers and sellers.
• The products sold are homogeneous in nature that means they are identical in all respects.
• The buyers and sellers have perfect knowledge of the market.
• Every seller has the freedom to enter or exit the industry.