Question

What is perfect competition?


two or more companies that are more or less equal competitively


a market structure in which a large number of firms all produce the same product


any factor that makes a new firm enter a market


a market structure in which a single firm produces all of a certain product

Answer 1

Perfect competition is defined as **a market structure in which a large number of firms all produce the same product**. In this scenario, no single firm has significant market power, and all firms are price takers. Characteristics of perfect competition include homogeneous products, a large number of buyers and sellers, free entry and exit from the market, and perfect information available to all market participants.