Which of the following is necessary for a market to be deemed perfectly competitive? maximize output,?

Question

Which of the following is necessary for a market to be deemed perfectly competitive? maximize output,?

Answer 1

many firms, free entry and exit, homogeneous products....that's perfect competition.

Answer 2

1. Many sellers but none with any significant market share of output / sales to influence price.

2. Many sellers but none accounting for a significant share of total market demanmd so as to influence price.

3. Homegeneous and indistinguishable single product that are available in the market and as perceived by the buyers.

4.Complete and perfect information among buyers and sellers about the price at which any transaction is taking place in the market.

5. Free entry of new buyers and sellers into the market (and free exit of existing buyers and sellers)(z without any entry or exit barrier created by law or by any superior technology or high capital investment, etc.

6. Net benefit (utility/ profit) maximization (given any constraint on budget) on the part of buyers and sellers