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The theory of the firm under perfect competition — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsThe theory of the firm under perfect competition4 Marks
Question
Explain "perfect knowledge about the markets" feature of perfect competition.
✓

Answer

In a perfectly competitive market buyers and sellers have full knowledge about the market. So no seller can charge a price higher than the price determined by the market and no buyer is willing to pay the price higher than the market price.

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