Which of the following is obtainable in a perfect market?
Answer Details
In a perfect market, the price of a product is determined by the intersection of the demand and supply curve, and all firms produce an identical product. In such a market, there is perfect information, no barriers to entry or exit, and no externalities. Also, there are a large number of buyers and sellers in the market. Based on these assumptions, the only option that is obtainable in a perfect market is P = MR = MC. This is because in a perfect market, firms are price takers, and the price (P) is equal to the marginal revenue (MR) of the firm, which is also equal to the marginal cost (MC) of production.