The term "perfect competition" refers to
A)rivalrous behaviour.
B)ideal economic behaviour.
C)a type of market structure.
D)the most prevalent market structure in a capitalist economy.
E)the most realistic market structure.

Question

Quizplus · Accepted Answer

Perfect competition is a type of market structure characterized by a large number of buyers and sellers, homogeneous products, perfect information, easy entry and exit, and no market power. It is considered an ideal market structure as it leads to allocative efficiency and productive efficiency. However, it is not the most prevalent or realistic market structure in a capitalist economy, as most markets have imperfect competition with some degree of market power held by the sellers.

The Term "Perfect Competition" Refers to