Question

What are the 5 characteristics of perfect competition?

Answer 1

Following are the characteristics of perfect competition:

1. Large numbers of buyers and sellers in the market.
2. Free entry and exit of firms in the market
3. Each firm should be selling a homogeneous product
4. Buyers and sellers should possess complete knowledge of the market
5. No price control
6. Perfect competition among buyers and sellers

Also read:

• The Theory of the Firm Under Perfect Competition
• Perfect Competition Defining Features
• Difference Between Price Ceiling and Price Floor
• Market Equilibrium

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