One of the important features of perfect competition is_____?

  • A Adequate knowledge of existing prices
  • B The influence on prices by individual economic units
  • C The restriction in terms of movement of goods and services
  • D The administration of a centralized price system
jamb 2016economics

The correct answer is A. Adequate knowledge of existing prices

A perfectly competition has the following characteristics:

There are many buyers and sellers in the market.

Each company makes a similar product.

Buyers and sellers have access to perfect information about price.

There are no transaction costs.

There are no barriers to entry into or exit from the market.

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