All of the following describes conditions necessary for exis…

JAMB Economics 2023 192 views
Source: JAMB · 2023

All of the following describes conditions necessary for existence of a perfect market EXCEPT

  1. lack of homogeneity of goods ✓
  2. large buyers and sellers
  3. perfect knowledge
  4. portability of goods
Explanation

A perfect market needs many buyers and sellers, perfect knowledge and goods that are homogeneous, meaning identical.

So lack of homogeneity of goods is the odd one out. If goods differ, buyers can prefer one seller, and the market is no longer perfect.

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