Perfect competition is the market situation in which a product has many buyers and sellers, and no single buyer or seller is powerful enough to affect a product's price.

Question

Quizplus · Accepted Answer

Perfect competition is characterized by a large number of buyers and sellers, homogeneous products, free entry and exit from the market, perfect information, and no externalities. In this market structure, no individual buyer or seller has the power to affect the market price, which is determined by the forces of supply and demand.

Perfect Competition Is the Market Situation in Which a Product