JAMB - Economics (2016 - No. 19)

One of the important features of perfect competition is_____?
Adequate knowledge of existing prices
The influence on prices by individual economic units
The restriction in terms of movement of goods and services
The administration of a centralized price system

Explanation

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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