2020 · Q35
A market, in which there are a large number of firms, homogeneous product, infinite elasticity of demand for an individual firm and no control over price by firms, is termed as
General KnowledgeIndian Economy
- Aoligopoly
- Bimperfect competition
- Cmonopolistic competition
- Dperfect competition
Explanation
A market with a very large number of firms selling a homogeneous product, where each firm faces infinitely elastic demand and has no control over price, is the textbook definition of perfect competition. Each seller in such a market faces a perfectly elastic (horizontal) demand curve, so the price is set entirely by market forces. Oligopoly, monopolistic competition and imperfect competition all involve differentiated products or some price influence.