ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Perfect competition occurs when there are many sellers, there is easy entry and exiting of firms, products are identical from one seller to another, and sellers are price takers.

Detailed explanation-2: -Well, a perfectly competitive market is a market where businesses offer an identical product and where entry and exit in and out of the market is easy because there are no barriers.

Detailed explanation-3: -A market with perfect competition features zero barriers to entry. Under perfect competition firms are unable to control prices, and produce similar or identical goods. This means that firms cannot operate strategic barriers to entry.

Detailed explanation-4: -What Is Perfect Competition? In economic theory, perfect competition occurs when all companies sell identical products, market share does not influence price, companies are able to enter or exit without barriers, buyers have perfect or full information, and companies cannot determine prices.

Detailed explanation-5: -In perfect competition, identical products are sold, prices are set by supply and demand, market share is spread to all firms, buyers have complete information about products and prices, and there are low or no barriers to entry or exit.