In perfect competition,which of the following conditions exist?
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

Perfect competition is characterized by a large number of sellers producing nearly identical products. This means that there is a perfect substitute for each product offered by any seller in the market. There are also a large number of buyers and no single buyer or seller can influence the market price. Supply and demand are perfectly elastic, meaning that any change in either will result in an immediate and proportional response from the other.

In Perfect Competition,which of the Following Conditions Exist