Perfect Competition - Topic 2

Choose the correct option(s).

Homogeneous product is a feature of ___________________.

• monopoly

• monopolistic competition

• perfect competition

Answer explanation

A market where large number of buyers and sellers buy and sell their homogeneous products. In this market, buyers and sellers have perfect knowledge of market conditions and thus uniform price prevails in such markets.

Choose the correct option(s).

In perfectly competitive market, goods are sold at _____________.

• uniform price

• differentiated price

• free of cost

Choose the correct option(s).

In perfect competitive market, factors of production are __________________.

• perfectly immobile

• perfectly mobile

• none of these

Choose the correct option(s).

In perfect competition, every buyer and seller is _______________.

• price maker

• price taker and maker

• price taker

Give the economic term.

Government policy under perfect competition.

Give the economic term.

Price prevailing under perfectly competitive market.