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Market Equilibrium — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsMarket Equilibrium2 Marks
Question
Explain the implications of 'perfect knowledge about market' under perfect competition.
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Answer

Perfect knowledge means that both buyers and sellers are fully informed about the market price. Therefore, no firm is in a position to charge a different price and no buyer will pay a higher price. As a result, a uniform price prevails in the market. In case of perfect competition, buyers and sellers have perfect knowledge of the market.

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