What do you mean by perfect competition market? Explain. – InterviewSolution

1.	What do you mean by perfect competition market? Explain.
Answer» Perfect Competition Market: It refers to the market condition in which there are large number of buyers and sellers of homogenous products. The price of the product is determined by the forces of demand and supply in the market. Maximum production that a firm can produce is relatively small compared to the total demand of the industry’s product so that it cannot affect the price by changing the supply of the output. With many companies and products under the perfect competition, no individual firm in this is in a position to influence the price of the product.

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