Perfect Competition: Defining Features | The Theory of the Firm Under Perfection Competition | Notes | Summary - Zigya

Book Store

Download books and chapters from book store.
Currently only available for.
CBSE

Previous Year Papers

Download the PDF Question Papers Free for off line practice and view the Solutions online.
Currently only available for.
Class 10 Class 12
Advertisement

The Theory Of The Firm Under Perfect Competition

Quickly browse through questions and notes on related topics. You can also download and read this topic offline.


Advertisement

Perfect Competition: Defining Features

Perfect Competition: It is a market situation in which there are a large number of buyers and sellers, firms sell a homogeneous product and there is free entry and exit.

Features of Perfect Competition:

  1. Very large number of buyers and sellers.
  2. Homogeneous Product.
  3. Free entry and exit of firms.
  4. Perfect Knowledge.
  5. Perfect mobility.
  6. Absence of transport cost.
  7. Demand curve is elastic and parallel to x-axis.
  8. Firm is the price taker and industry is the price maker.

Advertisement