Chercterstics of Perfect Competition
Larg number of Byer and Seller =
the first condition of perfect competition। is that there are number of buyers and sellers. No single seller or buyer is capable to influence the market price.
Homogeneous product =
It implies that product of all firm s under perfect competition are identical in all respects.
It means each seller in perfect competition sells identical products.
Freedom of existing form =
There is complete freedom to the existing firm to leave the industry and to new firm to join the industry.
Limited Share in the market =
Due to the presence of large number of buyers and sellers in the market, individual buyer in the market, individual buyer or seller has a negligible share in the market. As a seller individual buyer or seller cannot influence the market condition.
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