If perfect competition existed everywhere, along with frictionless exchange, perfect information, and constant returns to scale,

Question

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In perfect competition with frictionless exchange, perfect information, and constant returns to scale, consumers would carry out transactions directly with resource suppliers. This would eliminate the need for intermediaries such as firms, as consumers would have perfect information about the availability and prices of resources and would be able to make their own production decisions. Firms would not exist in this scenario as they would not be able to earn economic profits in the long run due to the presence of constant returns to scale.

If Perfect Competition Existed Everywhere, Along with Frictionless Exchange, Perfect