Price determination under perfect competition – Hello students, below is a topic of Microeconomics Class 12 of NCERT Economics Class 12 based on the pattern of CBSE Class 12 Economics. This article on Economics Class 12 is related to the s that an economy may face. Use the following information to frame your answers and score extraordinary marks in your examinations. Perfect competition market refers to a market situation where a large number of buyers and sellers are dealing in a homogeneous product.
Also, there are no legal, social or technological barriers to the entry and exit of any firm. It means that any firm is free to enter the market when finds it profitable and can leave it when wishes to do so.
Under the perfect competition market, the industry is the price maker and the firm is the price taker. It means that the price of the goods and the services are determined by the industry and they are accepted by the individual firms.
A FIRM is a producing unit which produces goods and services with the motive of earning profit through its sale.
An INDUSTRY is an aggregate of all the firms producing the same commodity. Alternatively, all the firms producing and selling the same product are collectively known as an industry.
Watch recorded lectures on Perfect competition market by clicking Economics Class 12.
Call at 8800999280 / 8800999283 / 8800999284 to
get best offer on class 12 All subjects
Call at 8800999280 / 8800999283 / 8800999284 fill the form for any other details:
Tags: price determination under perfect competition, price determination under perfect competition in short run, price determination under perfect competition with example, explain the process of price determination under perfect competition, price determination under perfect competition class 12 Notes