Answer to Question #74863 in Microeconomics for Nkosi

Question

Perfect competition is

Answer 1

Perfect competition is referred as a hypothetical market structure in which sellers and buyers have presence in large number for trading homogeneous products. It is a market where there are no barriers for sellers to enter or leave the market. In this market, both buyers and sellers have perfect knowledge of price of goods as well as technology. Perfect competition is a place where manufactures or sellers have a small control over prices of the products. Due to these features, it is also called as pure competition due to high level of competition in the market.