Question

The four important characteristics that define a perfectly competitive market are:

Select one:

a, standardized good, full information, no transactions costs, participants are price takers,

b. standardized information, finished good, no transactions costs, participants are price makers.

c. standardized good, same information for buyer and seller, low transactions costs, participants are price takers.

d. standardized good, full information, no transactions costs, participants are price makers.

Answer 1

Answer - a. standardized good, full information, no transaction cost, participants are price takers.

In a perfect competition market is that where there will be many number of buyers and sellers and the sellers are selling homogeneous goods.

The features of these kind of market is

A. Identical or standardised good.
B. There will be complete or full information about the market.

C. The transaction cost will be zero. While doing exchange of goods both seller and buyers don’t incur any cost.

D. The firms or sellers are price takers. They have to sell all the units at a given price. Price is determined by the industry.