One of the important features of perfect competition is_____?
ECONOMICS
JAMB 2016
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: A. Adequate knowledge of existing prices
Explanation
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.
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