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One of the important features of perfect competition is__...

One of the important features of perfect competition is_____?

A.

Adequate knowledge of existing prices

B.

The influence on prices by individual economic units

C.

The restriction in terms of movement of goods and services

D.

The administration of a centralized price system

Correct answer is A

A perfectly competition has the following characteristics:

 

  • There are many buyers and sellers in the market.
  • Each company makes a similar product.
  • Buyers and sellers have access to perfect information about price.
  • There are no transaction costs.
  • There are no barriers to entry into or exit from the market.