ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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. So all the firms in such a market are price takers.

Detailed explanation-2: -Perfect competition is a market situation where there are a large number of buyers and sellers and selling of identical products takes place. The commodity is sold at a uniform price in the market.

Detailed explanation-3: -Perfect competition is a market in which:-There is generally a large number of buyers and sellers.-Buyers and sellers sell identical products (there is no need for advertising).-Each buyer and seller acts independently.-Sellers and buyers are reasonably well-informed about products and prices.

Detailed explanation-4: -In a perfect competition model, there are no monopolies. This kind of structure has a number of key characteristics, including: All firms sell an identical product (the product is a commodity or homogeneous). All firms are price takers (they cannot influence the market price of their products).

Detailed explanation-5: -Monopolistic competition, also called competitive market, where there is a large number of firms, each having a small proportion of the market share and slightly differentiated products.