GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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seller as price taker
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presence of many firms
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firms selling identical products
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all of these
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Detailed explanation-1: -The three primary characteristics of perfect competition are (1) no company holds a substantial market share, (2) the industry output is standardized, and (3) there is freedom of entry and exit. The efficient market equilibrium in a perfect competition is where marginal revenue equals marginal cost.
Detailed explanation-2: -The correct answer is B: firms can set their own prices. Firms in perfect competition markets do not set their price.
Detailed explanation-3: -Perfect Competition. Features of Perfectly Competitive Market. 1) A large number of buyers and sellers. 2) Homogenous products. 3) Free exit and entry of firms. 4) Perfect knowledge among buyers and sellers. 5) No transport costs. 6) Perfect mobility of factors of production. More items