What is Perfect Competition Market?
Perfect Competition is a market structure where a large
number of buyer and sellers are present, and all are engaged in buying and
selling of homogeneous (undifferentiated) products at a single price prevailing
in the market. Under Perfect Competition market the firms can enter or exit
without any restriction.
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| Fruit Market |
Example:
If we look at local fruit market, where numerous fruit
seller sell same type of fruits at a specific price. In this type of market the
entry and exit of sellers are free. Due to presence of various sellers it leads
to specific that prevails the market.
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