For perfect competition to arise,it is necessary that market demand be

Name: For perfect competition to arise,it is necessary that market demand be
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Question

Quizplus · Accepted Answer

For perfect competition to arise, it is necessary for the market demand to be large relative to the minimum efficient scale of a single firm. This condition ensures that the market can support many firms, each producing at its minimum efficient scale, without any single firm being able to influence market prices significantly.

For Perfect Competition to Arise,it Is Necessary That Market Demand