ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a perfectly competitive market, each firm is a price taker, meaning that it has no control over the price. If it tries to raise its price, it loses all its consumers to other firms.

Detailed explanation-2: -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-3: -Under perfect competition, there are a large number of buyers and sellers in the market. Uner competition, the firms have no control over the price.

Detailed explanation-4: -In an efficient market, all identical goods must have only one price. Result: Each firm is a price taker. Firms have no control over price.

Detailed explanation-5: -In an oligopoly, a few sellers supply a sizable portion of products in the market. They exert some control over price, but because their products are similar, when one company lowers prices, the others follow. In a monopoly, there is only one seller in the market.