Question

List & Describe the four requirements for a firm to operate in a perfectly competitive marketplace.

Answer 1

For a firm to operate in perfect competition ,it has to fullfill the foure requirements-

1.there will be large number of sellers in the market foe the competition with the firm because there is no barriers to entry and exit to be in the market

2.No discrimination of products in any way like in price,quality,shape,size etc

3.Firm priority will be to maximize the profit first,and must not worry about the welfare of general public.

4.products will be honogeneous .The firm cannot change the price ,shape,size etc.