Question on: JAMB Economics - 2023
All of the following describes conditions necessary for existence of a perfect market EXCEPT
lack of homogeneity of goods
perfect knowledge
large buyers and sellers
portability of goods
Lack of homogeneity of goods is a condition that would not be necessary for the existence of a perfect market.
In a perfect or perfectly competitive market, goods are assumed to be homogeneous or identical.
This assumption helps ensure that buyers and sellers have perfect information and that there are no differences in the products offered by different sellers.
- Perfect knowledge implies that buyers and sellers have complete information about prices, products, and market conditions.
- Large numbers of buyers and sellers prevent any individual buyer or seller from influencing the market price.
- Portability of goods ensures that products can be easily transported and traded across different sellers.
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