The condition for pure competition is _________________.

large number of buyer and seller, free entry and exist

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homogenous product

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both (a) and (b)

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large number of buyer and seller, homogenous product, perfect knowledge about the product

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Solution

The correct option is C both (a) and (b)
There are 3 conditions necessary for Pure Competition:
(1) Large no. of buyers and sellers
(2) free entry and exit
(3) homogenous product.

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Similar questions

Which of the following is not a feature of perfect competition ?

(a) Large no. of buyers

(b) Free entry and exit

(d) Differentiated products

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

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