GK
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which of the following refers to perfect competition
|
|
There are no restrictions on movement of goods
|
|
|
There are no restrictions on factors of production
|
|
|
Both (a) and (b)
|
|
|
There are restrictions on buyers and sellers
|
Explanation:
Detailed explanation-1: -Therefore, agriculture is the best example of a perfectly competitive market.
Detailed explanation-2: -The fundamental condition of perfect competition is that there must be a large number of sellers or firms. Homogeneous Commodity is the second fundamental condition of a perfect market. The products of all firms in the industry are homogeneous and identical. Was this answer helpful?
Detailed explanation-3: -Answer and Explanation: The correct answer is option c. Firms can exit and enter the market freely. A perfectly competitive market is a theoretical market where firms can enter and exit the market freely or without cost.
There is 1 question to complete.