In perfect competition, which of the following conditions exists?
A) only one producer
B) no relationship between supply and demand
C) a large number of buyers and few sellers
D) a large number of sellers producing nearly identical products

Question

Quizplus · Accepted Answer

In perfect competition, there are a large number of sellers producing nearly identical products. This ensures that no one seller has control over the market price and there is a high degree of price competition. Additionally, buyers have access to perfect information about the products and prices in the market. This leads to an efficient allocation of resources and ensures that the market price is equal to the marginal cost of production.

In Perfect Competition, Which of the Following Conditions Exists