Question

Perfect competition is defined as market structure in which

a. there are many small sellers.
b. the product is homogeneous.
c. it is very easy for firms to enter or exit the market.
d. All of the above answers are correct.

Answer 1

All of the above answers are correct.

Step-by-step explanation:

A perfect competition is a type of market structure in which different organisations sell similar products.

The buyers and sellers possess adequate information on the different prices in which goods are being bought and sold in the market. The prices of goods tends to change significantly in response to the condition of demand and supply.

In perfect competition there is no barrier for entry into the market, new firms have free access to enter or exit the market, this deprivies existing firms from any form of monopoly power.