Answer:
1. marginal cost 2. lower
Explanation:
In a perfect competition, there are many buyers and sellers. When there are large numbers of buyers and sellers, no single buyer or seller has significant control of the market.
In a perfect competition, there are no barriers to entry. In a perfectly competitive market, there would be nothing to obstruct a business from entering any given market.
RASEL
In a perfect competition, companies set output and prices where the marginal revenue equals the marginal cost. Moreover, perfect competition benefits the customers because prices will be lower than in other market structures.
Other things being constant, a market where there are no barriers to entry for a large number of buyers and sellers, such that the price and demand remains constant, is known as a market with perfect competition.
Marginal revenue and costs are always at an equilibrium in a perfect competition, due to the equal forces of demand and supply. Moreover, the prices of goods and services in other markets are generally more than this.
Hence, the significance of a perfect competition is aforementioned.
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