ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a perfectly competitive (PC) market there is zero interdependence because no firm is large enough to affect market price. All firms in a PC market are price takers, as current market selling price can be followed predictably to maximize short-term profits.

Detailed explanation-2: -Under perfect competition, individual economic actors have no market power. 13. If a perfectly competitive firm wants to sell a larger quantity of goods, it must lower its selling price.

Detailed explanation-3: -Answer and Explanation: The correct option is-perfect competition only. In perfect competition, firms have no market power.

Detailed explanation-4: -Perfect Competition This means that the seller cannot charge any price he wants; he must charge the market price, which is determined by the interaction of all the buyers and sellers.

Detailed explanation-5: -Perfect competition is a hypothetical market structure in which there are very many firms, each of which represents an infinitesimal share of the market. In a perfectly competitive market, if any firm is able to earn an economic profit, other firms will immediately enter the market, driving economic profit to zero.