What you know about Perfect
Competition
Every market has its own market or
it’s depending on the product market that what types of strategy adopted by the
manufacture. “Perfect Competition” market is a important market condition to
study. A market where there are lots of buyers & seller in the market also
they are fully aware about the market also they deal in homogeneous types of
product with-out any restrictions.
In this market – on hand, there are
lots of sellers and there are able to supply a small percentage of total market
supply so he is not able to bring change in the market or price. But on the
other hand – there are lot of buyers and a single buyer not able to influence
the market when there is a homogeneous product available in the market.
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| What you know about Perfect Competition |
Some condition or assumption for
market
ü
Large
number of buyers and sellers
ü
Homogeneous
product
ü
Firm
free to enter or exit
ü
Profit
maximization
ü
Lack
of Artificial Restrictions
ü
Full
mobility in the market
ü
Full
knowledge of market
ü
Lack
of transport costs
