Explain features of perfect knowledge about the market.

6

(a)

Why is AR curve of a firm under perfect competition parallel to X-axis?

6

(a)

What is a competitive market? Briefly describe a type of market that is not perfectly competitive

6

(a)

Explain feature (implication) of 'large number of sellers and buyers' in perfect competition.

6

(a)

Explain the implications of large number of sellers in a perfectly competitive market.

6

(a)

Explain the implications of large number of buyers in a perfectly competitive market.

6

(a)

Explain the features of free entry and exit of firms.

6

(a)

"The rising portion of the SMC curve is the firm supply curve of competitive firm". Explain.

6

(a)

Explain the short run supply curve of the firm.

6

(a)

'Supply curve is the rising portion of marginal cost curve over and above the minimum of Average Variable cost curve'. Do you agree? Support your answer with valid reason.

6

(a)