Explain the following features of perfect competition:
(i) Large number of buyers and sellers.
(ii) Homogeneous products.

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Solution

a) Number of buyers and sellers: When there is a large number of buyers and sellers, it is a situation of perfect competition.
b) Nature of the commodity: When there homogenous product is sold, it is a situation of perfect competition.

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Explain the implications of the following features of perfect competition:

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