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Questions and Answers
What are the main features of perfect competition?
The main features of perfect competition include a large number of buyers and sellers, identical products, perfect information, free entry and exit, and no market power for individual firms.
Why is perfect competition characterized by a large number of buyers and sellers?
Perfect competition requires a large number of buyers and sellers to ensure that no single buyer or seller can influence the market price.
How does perfect competition differ from other market structures?
Perfect competition differs from other market structures in that it has a large number of small firms, identical products, and no barriers to entry or exit, leading to a situation where no individual firm has market power.
