ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a perfectly competitive market, commodity is homogeneous (identical). Thus, the buyers find no reason to prefer the product of one seller to the product of another. Hence the firms are price takers.

Detailed explanation-2: -Under perfect competition, products are homogeneous. Perfect competition is a form of the market in which there is a large number of buyers and sellers and where homogeneous product is sold at a uniform price.

Detailed explanation-3: -Homogenous products are considered to be homogenous when they are perfect substitutes and buyers perceive no actual or real differences between the products offered by different firms. Price is the single most important dimension along which firms producing homogenous products compete.

Detailed explanation-4: -Some examples of homogeneous products include cement, steel and chemical inputs for other products.

Detailed explanation-5: -Answer: False. Explanation: Under perfect competition products are homogeneous.