Commerce Exam  >  Commerce Notes  >  Economics Class 11  >  Infographic: Features of Perfect Competition

Infographic: Features of Perfect Competition | Economics Class 11 - Commerce PDF Download

Infographic: Features of Perfect Competition | Economics Class 11 - Commerce

The document Infographic: Features of Perfect Competition | Economics Class 11 - Commerce is a part of the Commerce Course Economics Class 11.
All you need of Commerce at this link: Commerce
59 videos|290 docs|51 tests

FAQs on Infographic: Features of Perfect Competition - Economics Class 11 - Commerce

1. What are the main characteristics of perfect competition?
Ans. The main characteristics of perfect competition include a large number of buyers and sellers in the market, homogeneous products that are identical in nature, free entry and exit of firms, perfect information available to all market participants, and price-taking behavior where individual firms cannot influence the market price.
2. How does perfect competition benefit consumers?
Ans. Perfect competition benefits consumers by ensuring lower prices and higher quality products. Since firms compete to attract customers, they strive to minimize costs and improve products, leading to greater efficiency and innovation. Additionally, consumers have access to more choices due to the large number of firms in the market.
3. What role does price elasticity of demand play in a perfectly competitive market?
Ans. In a perfectly competitive market, the price elasticity of demand is generally high, meaning that consumers are sensitive to price changes. If a firm increases its prices even slightly, consumers can easily switch to competitors offering the same product at a lower price, leading to a loss of market share for the firm.
4. Can a perfectly competitive market exist in reality?
Ans. While perfect competition is a theoretical model, it is rare in reality. However, some industries, such as agriculture, come close to this model due to the presence of many small producers and standardized products. Real-world markets often have imperfections such as barriers to entry, product differentiation, and varying degrees of market power.
5. What are the limitations of perfect competition as an economic model?
Ans. The limitations of perfect competition include its unrealistic assumptions, such as the existence of homogeneous products and perfect information. Additionally, the model does not account for externalities, market power, or the role of innovation and entrepreneurship, which can lead to inefficiencies in real-world markets.
Related Searches

shortcuts and tricks

,

Infographic: Features of Perfect Competition | Economics Class 11 - Commerce

,

study material

,

Free

,

practice quizzes

,

pdf

,

video lectures

,

Infographic: Features of Perfect Competition | Economics Class 11 - Commerce

,

mock tests for examination

,

Sample Paper

,

Extra Questions

,

Previous Year Questions with Solutions

,

ppt

,

Semester Notes

,

Important questions

,

Objective type Questions

,

MCQs

,

Exam

,

Summary

,

Infographic: Features of Perfect Competition | Economics Class 11 - Commerce

,

Viva Questions

,

past year papers

;