Perfect competition is termed as the phase of the firm that sells identical or homogenous products. It does not influence the price of the product, and the exits and entry into the market are free. The buyers get the full information about the product through the sellers.
Prices decrease when the market moves from a monopoly to perfect competition:
- When a company has a monopoly on a product, there is no other competition so that producers can price the product however high they want.
- When there is competition, the product must be priced appropriately or the consumer will go to another option.
- Additionally, monopolies can result in a lesser quality product.
To know more about the perfect competition, refer to the link below:
https://brainly.com/question/13873839
