BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The large number of buyers and sellers is one of the characteristics of perfectly competitive market together with: Homogeneity of the product, meaning the firms are producing almost the same products which are close to perfect substitutes. Free entry and exit from the market.

Detailed explanation-2: -A competitive market is a term in economics that refers to a marketplace where there are a large amount of buyers and sellers and no single buyer or seller can affect the market. Competitive markets have no barriers to entry, lots of a buyers and sellers and homogeneous products.

Detailed explanation-3: -There are a large number of buyers and sellers in a perfectly competitive market. The sellers are small firms, instead of large corporations capable of controlling prices through supply adjustments.

Detailed explanation-4: -Perfect Competition : The number of buyers and sellers in the market is very large. These buyers and sellers compete among themselves. Due to the large number, no buyer or seller influences the demand or supply in the market.

Detailed explanation-5: -It implies that by varying his demand, an individual buyer cannot affect total market demand for a commodity. Accordingly, an individual buyer cannot influence market price of the commodity. So that, for an individual buyer, market price is given. He can buy any quantity at the existing price of the commodity.