Which of the following is not feature of Perfect Competition?

Perfect knowledge of the market conditions to buyers and sellers

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Firm is a price maker

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Large number of buyers and sellers

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Free entry and exit

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Solution

The correct option is B Firm is a price maker
Perfect competition is a type of market where there are large number of buyers and sellers who deals in homogeneous product due to which no individual unit is able to influence the price of the product and the firms have to quote a single price that prevails in the market. Therefore, firms are price taker in perfect competition.

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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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