1, 2 and 3
2, 3 and 4
1, 3 and 4
All of these
Answer is Right!
Answer is Wrong!
The correct answer is D. All of these.
Pure competition is a market structure in which there are a large number of buyers and sellers, the products sold are identical, there is no barrier to entry or exit, and buyers and sellers have perfect information.
- A large number of buyers and sellers means that no single buyer or seller has a significant impact on the market price.
- Perfect homogeneity means that the products sold by all firms are identical. This means that buyers do not care from which firm they buy the product.
- No barrier to entry or exit means that firms can freely enter or exit the market. This means that there are no legal, financial, or technological barriers that prevent firms from entering or exiting the market.
- Perfect information means that buyers and sellers have complete information about the prices, products, and costs of all firms in the market. This means that buyers and sellers are able to make informed decisions about what to buy and sell.
Pure competition is a theoretical market structure that does not exist in reality. However, it is a useful model for understanding how markets work.