Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Non Competitive markets

Question:
Transportation costs are
Options:
Negligible in perfect competition
Important in perfect competition
Present in imperfectly competitive market
Both 1 and 3
Correct Answer:
Both 1 and 3
Explanation:
Buyers and sellers, in perfect competition, are very close to each other. Goods are produced locally and there is no need to transport the goods from one part of market to another. Hence zero transportation costs.