CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
5
You visited us 5 times! Enjoying our articles? Unlock Full Access!
Question

How there is absence of transportation cost in a firm under perfectly competitive market structure

Open in App
Solution

In a perfectly competitive market, it is assumed that all firms have equal access to the market. The goods are produced and sold locally; therefore the firms need not to incur any transportation cost to transport the finished product from one part of the market to the other. This further strengthens the existence of uniform price.
Implication- No firm can charge additional price as transportation costs, thereby uniform market price is guaranteed.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Introduction to Marketing
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon