Question

Which of the following are assumptions of perfect competition? Group of answer choices The products are identical. consumers have all the relevant information to make rational buying decisions. There are many buyers and sellers.

Answer 1

All of them

Step-by-step explanation:

Perfects competition represents an ideal market condition with many buyers and sellers. The presence of a large number of buyers and sellers creates room for competition. A market is in a perfect competition if the following traits are present.

1. A large number of firms in the market, both buyers and sellers,
2. Freedom of entry and exit in the market. No cost barriers for new entrants and exciting firms
3. All firms produce a similar product.
4. Absence of Price Control
5. Buyers have Perfect Knowledge of the Market
6. Unrestricted movement of the Factors of Production and Goods
7. Perfect Competition among Buyers and Sellers