Answer to Question #295834 in Microeconomics for Magodi

Question

What are the main features of the perfectly competitive market?

Answer 1

• The market has many buyers and sellers.
• There is equal access to information about price by all sellers and buyers.
• A perfectly competitive market has no transaction costs.
• There are no barriers to entering or exiting the market.
• The companies produce identical products i.e. no monopoly.