12th Class Economics Solved Paper - Economics 2013 Delhi Set-I

  • question_answer
    Explain 'large number of buyers and sellers' feature of a perfectly competitive market.

    Answer:

    There are very large number of buyers in perfect competition. No individual buyer can influence the mart, price because of its large number. Every buyer buys only fraction from the total sale of the product.
                Buyers like firms have to accept the price which is fixed by the supply and demand of the whole industry. Buyers can buy any quantity of product at this price. Similarly sellers are also very large in number having very small share in the marker Sellers cannot influence the market price and can sell any quantity on the prevailing price. That is why firms are called price-takers in perfectly competitive industry.


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