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: -Pure Competition Is Best for the Consumer From the consumer point of view, pure competition is the best type of market, because it gives consumers the greatest consumer surplus and maximizes total surplus for the economy.

Detailed explanation-3: -An ideal market is one with perfect competition, where price is set only on the basis of demand and supply.

Detailed explanation-4: -Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly. The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one in monopoly.