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JAMB Economics 2001 Question 20

Question 20

Market Structures

An important feature of perfect competition is that

  1. A.the movement of goods and services is restricted
  2. B.there is adequate knowledge of existing prices
  3. C.prices are centrally administered
  4. D.individual economic units can influence prices
Show the answer and explanation

Answer: B (there is adequate knowledge of existing prices)

Explanation

Perfect competition assumes buyers and sellers have perfect knowledge of market prices.