A requirement of perfect competition is that
i.many firms sell an identical product to many buyers.
ii.there are no restrictions on entry into (or exit from)the market,and established firms have no advantage over new firms.
iii.sellers and buyers are well informed about prices.

Question

Quizplus · Accepted Answer

Perfect competition requires all three conditions to be met: firms sell an identical product to many buyers (i), there are no restrictions on entry into (or exit from) the market and established firms have no advantage over new firms (ii), and sellers and buyers are well informed about prices (iii).

A Requirement of Perfect Competition Is That