{"id":51914,"date":"2024-04-15T23:31:40","date_gmt":"2024-04-15T23:31:40","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=51914"},"modified":"2024-04-15T23:31:40","modified_gmt":"2024-04-15T23:31:40","slug":"perfect-competition-is-a-market-situation-in-which-a-number-of-firm-sell-similar-goods-and-none-of-these-firms-is-in-a-position-to-influence-the-market-price","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/perfect-competition-is-a-market-situation-in-which-a-number-of-firm-sell-similar-goods-and-none-of-these-firms-is-in-a-position-to-influence-the-market-price\/","title":{"rendered":"Perfect competition is a market situation in which a number of firm sell similar goods and none of these firms is in a position to influence the market price."},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9771ffc5b0c\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Mrs. Robinson                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Prof. Leftwitch                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Prof. Adam Smith                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"true\">\r\n                    Prof. Marshall                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>D. Prof. Marshall<\/strong><\/p>\n<p>Perfect competition is a market structure in which there are many buyers and sellers of a homogeneous good or service, and no single buyer or seller has a large enough share of the market to influence the market price. In a perfectly competitive market, firms are price-takers, meaning that they must accept the market price for their goods or services.<\/p>\n<p>The concept of perfect competition was first developed by Alfred Marshall in his book &#8220;Principles of Economics&#8221; (1890). Marshall argued that perfect competition was the ideal market structure, as it would lead to the most efficient allocation of resources.<\/p>\n<p>However, perfect competition is rarely found in the real world. In most markets, there are some firms that have a larger share of the market than others. These firms are known as &#8220;oligopolists&#8221;. Oligopolists have some power to influence the market price, but they are not able to set the price completely arbitrarily.<\/p>\n<p>There are a number of reasons why perfect competition is rarely found in the real <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> world. One reason is that it is difficult to find a market with a large number of buyers and sellers. Another reason is that it is difficult to find a market in which the goods or services being sold are homogeneous. Finally, it is difficult to find a market in which there are no barriers to entry or exit.<\/p>\n<p>Despite the fact that perfect competition is rarely found in the real world, it is still an important concept in economics. The concept of perfect competition helps us to understand how markets work and how prices are determined. It also <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> helps us to understand the effects of government intervention in markets.<\/p>\n<p>The other options are incorrect because:<\/p>\n<ul>\n<li>Mrs. Robinson was an economist who developed the theory of imperfect competition.<\/li>\n<li>Prof. Leftwitch was an economist who developed the theory of oligopoly.<\/li>\n<li>Prof. Adam Smith was an economist who developed the theory of laissez-faire economics.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Perfect competition is a market situation in which a number of firm sell similar goods and none of these firms is in a position to influence the market price.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/perfect-competition-is-a-market-situation-in-which-a-number-of-firm-sell-similar-goods-and-none-of-these-firms-is-in-a-position-to-influence-the-market-price\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Perfect competition is a market situation in which a number of firm sell similar goods and none of these firms is in a position to influence the market price.\" \/>\n<meta property=\"og:description\" content=\"Subscribe on YouTube\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/perfect-competition-is-a-market-situation-in-which-a-number-of-firm-sell-similar-goods-and-none-of-these-firms-is-in-a-position-to-influence-the-market-price\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T23:31:40+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Perfect competition is a market situation in which a number of firm sell similar goods and none of these firms is in a position to influence the market price.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/perfect-competition-is-a-market-situation-in-which-a-number-of-firm-sell-similar-goods-and-none-of-these-firms-is-in-a-position-to-influence-the-market-price\/","og_locale":"en_US","og_type":"article","og_title":"Perfect competition is a market situation in which a number of firm sell similar goods and none of these firms is in a position to influence the market price.","og_description":"Subscribe on YouTube","og_url":"https:\/\/exam.pscnotes.com\/mcq\/perfect-competition-is-a-market-situation-in-which-a-number-of-firm-sell-similar-goods-and-none-of-these-firms-is-in-a-position-to-influence-the-market-price\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T23:31:40+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/perfect-competition-is-a-market-situation-in-which-a-number-of-firm-sell-similar-goods-and-none-of-these-firms-is-in-a-position-to-influence-the-market-price\/","url":"https:\/\/exam.pscnotes.com\/mcq\/perfect-competition-is-a-market-situation-in-which-a-number-of-firm-sell-similar-goods-and-none-of-these-firms-is-in-a-position-to-influence-the-market-price\/","name":"Perfect competition is a market situation in which a number of firm sell similar goods and none of these firms is in a position to influence the market price.","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T23:31:40+00:00","dateModified":"2024-04-15T23:31:40+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/perfect-competition-is-a-market-situation-in-which-a-number-of-firm-sell-similar-goods-and-none-of-these-firms-is-in-a-position-to-influence-the-market-price\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/perfect-competition-is-a-market-situation-in-which-a-number-of-firm-sell-similar-goods-and-none-of-these-firms-is-in-a-position-to-influence-the-market-price\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/perfect-competition-is-a-market-situation-in-which-a-number-of-firm-sell-similar-goods-and-none-of-these-firms-is-in-a-position-to-influence-the-market-price\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"Economics","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/economics\/"},{"@type":"ListItem","position":4,"name":"Perfect competition is a market situation in which a number of firm sell similar goods and none of these firms is in a position to influence the market price."}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/51914"}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=51914"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/51914\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=51914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=51914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=51914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}