Illustrates the perfect competition
Illustrates the perfect competition?
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The term perfect competition is utilized in wider sense. The meaning of Perfect competition implies that all the buyers and sellers in the market are conscious of price of products .The following are the characteristics of perfectly competitive market as follows:
a. Huge number of buyers and sellers into the market
b. Homogeneous product
c. Free exit or entry
d. All the buyers and sellers into the market consist of perfect knowledge regarding the market conditions.
e. Perfect type mobility of factor of production
f. Transportation costs absent.
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