Question

What are the advantages of perfect competition?

Answer 1

The advantages of perfect competition are as follows:

1. Knowledge is shared evenly between all the participating firms in the market.
2. Due to no barriers to entry, the existing firms cannot exercise monopoly.
3. Allocation of resources is done in the most efficient manner.

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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