ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The correct answer is Perfect competition. In a perfect competition market structure, there are a large number of buyers and sellers. All the sellers of the market are small sellers in competition with each other. There is no one big seller with any significant influence on the market.

Detailed explanation-2: -Perfect competition is a form of market with many firms and buyers. Perfect competition has the largest number of firms compared to all the other market structures.

Detailed explanation-3: -A perfectly competitive market is composed of many firms, where no one firm has market control.

Detailed explanation-4: -In fact, the major result of the general equilibrium analysis is the fol-lowing: under certain conditions, a general equilibrium with two or more noncolluding firms per industry is perfectly competitive.

Detailed explanation-5: -Oligopoly = A market structure with few firms and barriers to entry. There is often a high level of competition between firms, as each firm makes decisions on prices, quantities, and advertising to maximize profits.