Answer:
1. Perfect competition
2. Little to no
3. takers
Explanation:
Following are the features of Monopolistic competition to make you understand better.
Large numbers of buyers and sellers: No single buyer or seller is able to
influence the market price for the product – this is only possible through high volume which dilutes any power any single party may have.
Homogeneous product: An identical product means no individual producer can charge more for a good that could be considered superior.
Free entry and exit: Firms can leave and enter as determined by fluctuations in profit.
Perfect knowledge of prices: Buyers and sellers are fully aware of prices in the market.
Transport costs are negligible: This doesn’t impact on the market choices of the economic agents.
Perfect factor mobility: Factors of production are perfectly mobile, allowing free long term adjustments to be made by the firm.
Firms are price takers: Firms are price takers as they have little to no influence on the market.
