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Question
What are the characteristics of a perfectly competitive market? Explain.
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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.
c)
Degree of price control: In perfect competition there is no control
over price.
d)
Mobility of factors: Perfect mobility of factors is a unique feature of
perfect competition. It is not found in other forms of the market.
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.
c)
Degree of price control: In perfect competition there is no control
over price.
d)
Mobility of factors: Perfect mobility of factors is a unique feature of
perfect competition. It is not found in other forms of the market.Suggest Corrections
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