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The Theory Of The Firm Under Perfect Competition
Question
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What are the characteristics of a perfectly competitive market?

Answer

(i) Very large number of buyers and sellers, (ii) Homogeneous product, (iii) Free entry and exit of firms, (iv) AR curve is parallel to X-axis, (v) Perfect knowledge and (vi) Firm is price taker. 

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Some More Questions From The Theory Of The Firm Under Perfect Competition Chapter

What is perfect competition?  

Name the market structure in which firm is itself an industry.

 Define the term market as used in economics.

What is meant by monopolistic competition?

What are selling costs?

Define homogeneous product.

What is meant by differentiated product?

 Define perfect competition.

 Is the seller under perfect competition a price maker or a price taker? 

Define monopoly.