Match the following. List-I (Characteristics of Perfect Competition) List-II (Explanations) a. Many small sellers 1. No seller is able to exert a significant influence over price b. Many small buyers 2. No buyer’s is able to exert a significant influence over price c. Product undifferentiated 3. Decision to buy are made on the basis of price d. Easy entry and exit 4. Resources are easily transferable among industries

The correct answer is: D. a-1, b-2, c-3, d-4

Here is a brief explanation of each option:

a. Many small sellers: This means that there are a large number of sellers in the market, each of which has a small share of the market. This prevents any one seller from exerting a significant influence over price.
b. Many small buyers: This means that there are a large number of buyers in the market, each of which has a small share of the market. This prevents any one buyer from exerting a significant influence over price.
c. Product undifferentiated: This means that the products offered by different sellers are identical. This means that buyers will only consider price when making their purchasing decisions.
d. Easy entry and exit: This means that it is easy for firms to enter and exit the market. This means that firms will only enter the market if they expect to make a profit, and will exit the market if they are making a loss.

I hope this helps!