The features of perfect competition as follows:
I. Large number of buyers and sellers
II. hetrogeneous product
III. free entry and free exit for firms
IV. existence of transport cost Of these

I, II and III are correct

No worries! We‘ve got your back. Try BYJU‘S free classes today!

I and III are correct

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

I, II and IV are correct

No worries! We‘ve got your back. Try BYJU‘S free classes today!

All are correct

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D I and III are correct
The following features are essential for the existence of Perfect Competition:
Large Number of Buyers and Sellers
Homogeneity of the Product
Free Entry and Exit of Firms
Perfect Knowledge of the Market
Perfect Mobility of the Factors of Production and Goods

Suggest Corrections

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

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

(a) Large no. of buyers

(b) Free entry and exit

(d) Differentiated products

Join BYJU'S Learning Program