Which of the following is not an essential condition of pure competition?

A Large number of buyers and sellers
B Homogeneous product
C Freedom of entry
D Absence of transport cost

Correct Answer: Absence of transport cost

Absence of transport cost is not an essential condition of pure competition. If the two conditions of pure competition are fulfilled, there can be no question of monopolistic control. In perfect competition, apart from the absence of monopoly, some other conditions are also essential, e.g., free entry and exit, the absence of transport cost, perfect knowledge.
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#Commerce #Economics

Related Questions

Given that, 24 carat gold is pure gold, 18 carat gold is 3/4th of pure gold and 20 carat gold is 5/6th of pure gold, the ratio of the pure gold in 18 carat gold to the pure gold in 20 carat gold is -
A 5 : 8
B 10 : 9
C 8 : 5
D 9 : 10
The prize competition was 'touted' as a showcase for new technology, but instead the competition was marred by disqualifications and disputes. The quotation word can be best substituted with which of the following words?
A conceived
B heralded
C disappointing
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"The prize competition was "touted"as a showcase for new technology, but instead the competition was marred by disqualifications and disputes." The underlined word can be best substituted with which of the following words?
A conceived
B heralded
C disappointing
D promising
In a rare coin collection, all coins are either pure gold or pure silver , and there is initially one gold coin for every three silver coins . With the addition of 10 more gold coins to the collection, the ratio of gold coins to silver coins is 1 to 2. Based on this information , how many total coins are there now in this collection (after the acquisition)?
A 40
B 50
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For seccessful operation of two single phase transformer connected in parallel, the most essential condition is that their
A Percentage impledances are equal
B Polarities are properly connected
C Turns ration are exactly equal
D KVA rating are equal
The essential condition for the promotion of higher activities of life is
A Dedication on the part of those who practice them
B Economic freedom
C Safety
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The essential condition for the decompression of an activity is that
A The project time should change due to decompression
B After decompression the time of an activity invariably exceeds its normal time
C An activity could be decompressed to the maximum extent of its normal time
D None of the above
The essential condition for parallel operation of two D.C. generators is that they have
A Same kW rating
B The same operation r.p.m.
C The same drooping voltage characteristics
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A Only
B Plus variable cost
C Plus overhead cost
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(i) The facts speak for themselves so they need exposition only, not demonstration. (ii) At present , it is widely recognized that the Indian subcontinent holds the balance in world wide competition between rival ideologies. (iii) It is not of course , only in geographical perspective that the subcontinent is in a key position. (iv) The subcontinents's key position simply needs pointing out.
A (iv) + (ii) + (i) + (iii)
B (ii) + (iii) + (iv) + (i)
C (ii) + (iv) + (iii) + (i)
D (iii) + (i) + (ii) + (iv)

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