Perfect Competition
Perfect Competition is a situation or a market structure where there are large number of buyer and sellers and where the competition in the market is at its highest level or is at peak .
Perfect Competition is a market situation in which there are large number of buyers and sellers busy in buying and selling homogenous product at a single price.
In other words, perfect competition also referred to as a pure competition, exists when there is no direct competition between the rivals and all sell identically the same products at a single price.
The Perfect Competition is an economic condition where all the companies in the market are on same level of level field and none of the company have advantage over another company .
Features of Perfect Competition
Following are the characteristics / Features of Perfect Competition:
- A market having large number of buyers and sellers is said to be perfect or pure competition
- A market where homogenous or same product is produced by every firm present in the market is said to be perfect competition .
- A market where there is free and easily exit and entry of the firms is said to be perfect market competition
- A market where there is Zero advertisement cost is said to be perfect competition market
- A market where the consumers and customers are well aware of the product and have pretty enough knowledge about the product such market is known as perfect competition market.
- A market where there is no government intervention or any sort of government involvement is also known as Perfect competition market .
- A market where there is transportation free of cost or there is no transportation cost is a perfect competition market
- Every firm In the market earn normal profit and no firm earn super normal profit is also the condition of perfect market competition
- Every firm in the market is price taker and it takes price defined by the demand and supply of the product.
November 09, 2018