Question

What are the three conditions for a market to be perfectly​ competitive? For a market to be perfectly​ competitive, there must be A. many buyers and​ sellers, with firms selling similar but not identical​ products, with low barriers to new firms entering the market.

Answer 1

What are the three conditions for a market to be perfectly​ competitive?

Many firms produce identical products;

Many buyers are available to buy the product, and many sellers are available to sell the product.

Sellers and buyers have all relevant information to make rational decisions.

Step-by-step explanation:

Firms are in perfect competition when the following conditions occur:

Many firms produce identical products;

Many buyers are available to buy the product, and many sellers are available to sell the product.

Sellers and buyers have all relevant information to make rational decisions.