ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Perfect competition is an ideal type of market structure where all producers and consumers have full and symmetric information and no transaction costs. There are a large number of producers and consumers competing with one another in this kind of environment.

Detailed explanation-2: -The correct sequence of the market structure from most to least competitive is perfect competition, imperfect competition, oligopoly and pure monopoly.

Detailed explanation-3: -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.

Detailed explanation-4: -Perfect competition is an economic model of market structure. Economists use it to study behavior and outcomes in highly competitive markets-highly competitive, meaning no buyer or seller has power over other buyers and sellers. In perfect competition, all market participants interact on a level playing field.

Detailed explanation-5: -In a competitive market, no single consumer or producer has the power to dictate the market. A perfectly competitive market is an ideal market where there are many well-informed buyers and sellers, no barriers to market entry and no possibility of a monopoly.