PERFECT COMPETITION MARKET
In this type of market there are numerous buyer and sellers selling homogeneous products and no one is able to buy his own action to influence the market price.
FEATURES OF PERFECT COMPETITION MARKET:-
1.Large number of sellers and buyers: In this large number of seller and buyer for a good in this market. It mean that the output of a buyer or a seller is a small part of the total output. A single producer or seller cannot change the price by his action. None of them is large enough to influence the price.
2.Homogeneous commodities: Product in this market are similar in every aspects. A consumer gets the same good whenever he purchases. As a result there will be one price all over the market.
3.Free entry and exist: Any firm can enter in to production as per its desire. It can leave the production at any time.
4.Mobility of factor of production: Factor of production will move one production to another easily. The land, labour and capital move to the production activities where they get higher income.
5.Perfect knowledge of market: Buyer and seller in this market will have clear knowledge about it market condition.
In this type of market there are numerous buyer and sellers selling homogeneous products and no one is able to buy his own action to influence the market price.
FEATURES OF PERFECT COMPETITION MARKET:-
1.Large number of sellers and buyers: In this large number of seller and buyer for a good in this market. It mean that the output of a buyer or a seller is a small part of the total output. A single producer or seller cannot change the price by his action. None of them is large enough to influence the price.
2.Homogeneous commodities: Product in this market are similar in every aspects. A consumer gets the same good whenever he purchases. As a result there will be one price all over the market.
3.Free entry and exist: Any firm can enter in to production as per its desire. It can leave the production at any time.
4.Mobility of factor of production: Factor of production will move one production to another easily. The land, labour and capital move to the production activities where they get higher income.
5.Perfect knowledge of market: Buyer and seller in this market will have clear knowledge about it market condition.
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