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The following statements are the characteristics of perfect competition market.

Which one is true?

a. Homogeneous products and perfect information

b. Identical products and imperfect information

c. Differentiated products and asymmetric information

d. Homogenous information and imperfect products

1 Answer

4 votes

Answer:

a. Homogeneous products and perfect information

Step-by-step explanation:

A perfect competition market is a market in which the level of competition is high.

It has the following characteristics -

1. Knowledge is perfect in this competition of producer and consumer with respect to the market.

2. Free entry and exit

3. Deals with homogeneous or identical products

4. The buyers and sellers are more in this market

5 No transportation exist

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