Which of the following refers to perfect competition? 1. There are restrictions on buyers and sellers. 2. There are no restrictions on movement of goods. 3. There are no restrictions on factors of production. Select the correct answer

The correct answer is: D. Only 1

Perfect competition is a market structure in which there are many buyers and sellers of a homogeneous product, there are no barriers to entry or exit, and buyers and sellers have perfect information.

Option 1: There are restrictions on buyers and sellers.

This is not a characteristic of perfect competition. In perfect competition, there are no restrictions on buyers and sellers. Buyers and sellers are free to enter and exit the market as they please.

Option 2: There are no restrictions on movement of goods.

This is a characteristic of perfect competition. In perfect competition, there are no restrictions on the movement of goods. Goods can be freely bought and sold in any market.

Option 3: There are no restrictions on factors of production.

This is a characteristic of perfect competition. In perfect competition, there are no restrictions on the factors of production. Factors of production can be freely bought and sold in any market.

Therefore, the only option that refers to perfect competition is option 1.