ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The most fundamental is perfect competition, in which there are large numbers of identical suppliers and demanders of the same product, buyer and sellers can find one another at no cost, and no barriers prevent new suppliers from entering the market. In perfect competition, no one has the ability to affect prices.

Detailed explanation-2: -In a perfectly competitive market, each firm and each consumer is a price taker. A price-taking consumer assumes that he or she can purchase any quantity at the market price-without affecting that price.

Detailed explanation-3: -The answer is d. There are many suppliers in perfect competition making an identical product. No supplier makes enough of the supply of the product that they can influence the market equilibrium. Each firm is a price taker.

Detailed explanation-4: -In a perfect competition model, there are no monopolies. This kind of structure has a number of key characteristics, including: All firms sell an identical product (the product is a commodity or homogeneous). All firms are price takers (they cannot influence the market price of their products).