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3 May, 07:19

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.

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  1. 3 May, 07:24
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    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.

    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.
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