ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Most agricultural markets are “perfectly competitive, ” meaning (ideally) that a homogeneous product is produced by and for many sellers and buyers, who are well informed about prices. The market is characterized by free entry and exit, with producers obligated to be price takers.

Detailed explanation-2: -Economists often use agricultural markets as an example of perfect competition.

Detailed explanation-3: -Pure or perfect competition is a market structure defined by a large number of small firms competing against each other. A single firm doesn’t have significant marketing power, and as a result, the industry produces an optimal level of output because firms don’t have the ability to influence market prices.

Detailed explanation-4: -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-5: -Market structure refers to those organizational characteristics of a market which influence the nature of competition and pricing, and affect the conduct of business firms, 2. Market structure refers to those characteristics of the market which affect the traders’ behaviour and their performances, 3.