Define a Perfect market. Explain any four features of a Perfect market.
- A perfect market is a market situation where there are large
number of buyers and sellers dealing in a homogeneous product at a price fixed
by the market. The goods are sold at uniform price and is fixed by the industry
and not by any particular firm.
Its features are:
- There are very large number of buyers and sellers.
- The products
sold are homogeneous in nature that means they are identical in all respects.
- The
buyers and sellers have perfect knowledge of the market.
- Every seller has the
freedom to enter or exit the industry.