CUET Preparation Today
| Which condition is essential for a large number of firms to exist in a perfectly competitive market? |
Free entry and exit Perfect information Homogeneous information None of the above |
| Free entry and exit |
| Free entry and exit mean that it is easy for firms to enter the market, as well as to leave it. This condition is essential for the large numbers of firms to exist. If entry was difficult, or restricted, then the number of firms in the market could be small. |
