Explain the implication of "Perfect Knowledge about Market" under perfect competition.

‘Perfect Knowledge implies that buyers are fully aware of price in market and sellers of technique of production. Knowledge by buyers further implies that no buyers is willing to pay a higher price for the product of any firm. Knowledge by sellers implies that cost of production is same for all producers.

Detailed Answer:

'Perfect Knowledge about Market' means both buyers and sellers are fully informed about the market prices. Therefore, no firm is in a position to charge a different price and no buyer will pay a higher price. As a result, a uniform price prevails in the market.