Respuesta :
Answer:
Perfectly competitive market A market that meets the conditions of (1) many buyers and sellers, (2) all firms selling identical products, and (3) no barriers to new firms entering the market. Price taker A buyer or seller that is unable to affect the market price.
HOPE THIS HELPED!!!!!!!!XDDD
A perfect market is a market situation where a large number of buyers and sellers interact, selling a homogeneous product at a fixed price predetermined by the market.
Define perfect market?
A perfect market is one in which buyers and sellers have full knowledge and where sellers of goods or services are free to compete fairly. A market that is designed to be completely free of abnormalities that may otherwise prevent the best pricing from being realized is referred to as a perfect market.
What do you understand by a homogeneous product?
When two homogenous products are ideal equivalents for one another and consumers are unable to distinguish between the goods sold by various businesses, the products are said to be homogenous.
The most crucial differentiator in the competition between businesses making similar items is price. However, empirical evidence shows that the presence of homogenous products may encourage collusion when there are few of these enterprises. Collusive agreements have been discovered in a number of jurisdictions in the case of homogeneous goods including cement, flour, steel, and sugar.
The homogeneous product is offered in a market that is very competitive. The product can differentiate itself from the imperfect competition. Homogeneous products are only marginally differentiated under monopolistic competition through packaging, promotion, or other non-pricing tactics.
The goods can be used in place of one another properly. They deliver the same level of fulfilment. Physically, they are alike.
No one is loyal to the brand. There is no reason for customers to favor one product over another when they are identical. Switching costs are not borne by consumers. So, when a company increases its selling price, they migrate to other products. Typically, producers use the product's market price as its selling price. The enterprises are generally modest in size, hence they are powerless to change the nature of the market supply.
To learn more about perfect market, click here
https://brainly.com/question/9170795
#SPJ2
